President Joe Biden and Vice President Kamala Harris convened in Maryland, on August 15th, to deliver an update on the significant strides achieved in reducing the exorbitant costs of prescription drugs.
The address was held at Prince Georges County Community College, marking the first joint event since Biden withdrew from the presidential race and endorsed Harris on July 21st.
Highlighting a grave concern, Biden emphasized the fact that Americans pay more for prescription drugs than any other developed nation in the world.
During his speech, Biden openly criticized the pharmaceutical industry for lavishly spending $400 million the previous year to influence Congress against this program.
With a sense of accomplishment, Biden expressed, “This time, we finally beat Big Pharma.”
On August 15th, the Department of Health and Human Services disclosed their successful negotiation with drug companies to reduce the prices of ten of the most expensive prescription drugs covered under Medicare.
The revised pricing, expected to take effect in 2026, is projected to save seniors and other Medicare beneficiaries a substantial $1.5 billion in out-of-pocket expenses within the inaugural year, as reported by the White House.
During her speech, Harris reflected on the groundbreaking August 2022 legislation, the Inflation Reduction Act, which granted Medicare the authority to negotiate lower prescription drug prices for the first time ever.
Asserting the power of Medicare, she declared, “Medicare can now use its collective bargaining power to stand up against Big Pharma.”
The identified drugs chiefly treat illnesses, including heart failure, blood clots, diabetes, arthritis, and Crohn’s disease. Medicare anticipates saving a substantial $6 billion during the initial year through this initiative.
Eager to alleviate the financial burden on American taxpayers, Biden expressed, “This is merely the opening round of drug price negotiation.”
Among the 54 million individuals covered under Medicare Part D, around 9 million prescribed the ten drugs that will observe price reductions.
Stressing the importance of affordable healthcare for all Americans, regardless of their income or wealth, Harris stated, “Every American deserves access to essential healthcare.”
The program will extend its reach by including an additional 15 drugs covered by Medicare Part D for negotiation in 2025, followed by an extra 15 drugs under Parts B and D in 2026, with a plan to include 20 more drugs each subsequent year.
Last year, the Biden administration effectively capped insulin costs at $35 per month for numerous Medicare Part D enrollees. They also launched the Savings Explorer website to showcase their ongoing efforts to reduce healthcare, grocery, and utility expenses.
During her upcoming speech in North Carolina on August 16th, Harris is anticipated to propose a federal ban on price gouging as part of her comprehensive economic plan aimed at curbing costs, including grocery bills.
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