Official reports from the Centers for Medicare & Medicaid Services (CMS) or the Department of Health and Human Services (HHS)

Biden-Harris Administration Lowers Medicare Drug Prices, Saves $1.5 Billion

Aug 19, 2024, 08:19 PM

The Biden-Harris Administration, alongside congressional Democrats, has successfully implemented a program allowing Medicare to negotiate prescription drug prices, marking a significant policy shift aimed at reducing healthcare costs for seniors. This initiative, part of the Inflation Reduction Act, includes capping insulin prices at $35 per month and limiting out-of-pocket expenses for Medicare beneficiaries to $2,000 annually. The program is expected to save Americans and the government billions of dollars, with estimated savings of $1.5 billion in out-of-pocket costs for seniors in the first year alone and $6 billion in 2026. The negotiated price reductions apply to 10 essential medications used by approximately 9 million Americans, including treatments for cancer, diabetes, and heart failure. This move represents a major victory over pharmaceutical companies, often referred to as 'Big Pharma', and is seen as a step towards broader healthcare reform.