In response to President Biden’s comments in his State of the Union address about the historic drug price reforms in the Inflation Reduction Act and the forward-looking proposals he announced to further reduce drug prices, Merith Basey, Executive Director of Patients For Affordable Drugs Now, issued the following statement:
“Tonight, President Biden highlighted the monumental drug price reforms achieved through the Inflation Reduction Act, a cornerstone of his agenda and an issue that is overwhelmingly supported by the American people who are tired of being ripped off by pharmaceutical companies to the detriment of their lives and livelihoods.
“The enactment of the historic drug price reforms, coupled with the President’s proposal to more than double the number of drugs subject to Medicare negotiation and expand cost-saving measures to millions of people on private insurance, would be transformative toward ensuring that everyone in the U.S. can access the drugs they need at prices they can afford.
“This landmark legislation is a testament to the relentless efforts of patients. While we are already witnessing the impact of some of these reforms to lower drug prices, we continue to hear from patients burdened with high drug prices who are desperate for relief. On behalf of patients, we will continue to advocate for policies that protect and expand on the drug price reforms in the Inflation Reduction Act, dismantle Big Pharma’s abuse of the patent system, and make drugs more affordable for all who need them.”
P4ADNow patient advocate, Steven Hadfield, was a guest of First Lady Jill Biden in her box during the State of the Union this evening. Steven, who is 71 and a longtime resident of North Carolina, takes Januvia for his diabetes, which is one of the first 10 drugs selected for Medicare negotiation. He is also living with blood cancer and despite being in his 70s, cannot retire due to the price of his medications. He shared the following statement:
“’For far too long, big drug companies have made a fortune while patients like me live in constant fear, wondering how we’ll pay for our medicine. The Inflation Reduction Act has been a lifeline, reducing my insulin costs from $400 to $35 per month. Medicare’s ability to negotiate lower drug prices offers hope for millions of patients like me. Less expensive drugs would finally allow me to rest more often or hopefully help me transition from working full-time to working part-time. I am honored to be a guest of First Lady Jill Biden during the State of the Union as President Biden advocates for lower drug prices. He understands that drugs don’t work if people can’t afford them.”
BACKGROUND
The historic Inflation Reduction Act is lowering prescription drug prices and reducing out-of-pocket costs for millions of people in this country.
- Starting in 2026, negotiated prices will take effect on 10 of the highest-cost drugs for Medicare, lowering prices and out-of-pocket costs for millions of patients. Yesterday, President Biden proposed expanding Medicare negotiation to 50 drugs every year instead of a maximum of 20 per year.
- Insulin costs in Medicare are capped at $35 monthly. About 1.5 million people on Medicare who use insulin would have saved $734 million in Part D and $27 million in Part B out-of-pocket costs in 2020 if these caps had been in effect in 2020.
- When the $2,000 out-of-pocket cap on prescription drugs applies in Medicare in 2025, nearly 19 million seniors and others on Medicare are projected to save $400 per year on prescription drugs. In yesterday’s proposal, President Biden called on Congress to expand the $2,000 out-of-pocket cap to all private insurance – expanding the cap to 189 million people not on Medicare.
- Recommended vaccines that would have cost $100-200 per vaccination are now free under Medicare Part D because of the Inflation Reduction Act. In 2021, 3.4 million people received vaccines under Part D.
- Yesterday’s proposal also includes a $2 cost-sharing limit for specific generic drugs such as statins and beta-blockers for people on Medicare Part D.
- It also included a proposal to improve access to cell and gene therapies, starting with addressing sickle cell disease, a condition that affects more than 100,000 people in the United States, and extending requirements for drug companies to pay rebates when their price increases exceed the rate of inflation.
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