Ensuring Successful Implementation of the Historic Drug Price Reforms
The 2022 Prescription Drug Law marks a historic victory for patients. After two decades of unchecked pricing power that left millions struggling to afford medications, the prescription drug law is finally delivering relief to patients on Medicare. These changes cap out-of-pocket costs for patients including limiting the monthly cost of insulin to $35, offering free recommended vaccines, and many more transformative steps that are already making prescription drugs more affordable. However, with legal and legislative challenges from the pharmaceutical industry and its allies, defending these reforms remains crucial to ensuring that patients, not pharmaceutical profits, remain the priority.
Beginning in 2025, out-of-pocket expenses for people on Medicare Part D will be capped at $2,000 annually for prescription drugs, delivering critical financial protection for seniors and those on fixed incomes. However, the most historic victory within the Inflation Reduction Act is Medicare’s new authority to negotiate drug prices. For the first time in its 59-year history, Medicare has been granted the power to directly negotiate with drug companies in order to reduce the cost of some of the most widely used and expensive medications – in line with the policies of every other high-income country. When the new negotiated prices on the first 10 drugs take effect in 2026, patients may see substantial savings when compared with current prices. Since our founding, securing Medicare’s authority to negotiate drug prices has been the top priority at P4AD. And now, we’re committed to defending this hard-won reform against pharmaceutical industry attacks.
I take Xarelto, one of the first drugs up for Medicare negotiation, to prevent me from developing dangerous blood clots that could lead to a heart attack or stroke. Unfortunately, Xarelto carries a monthly price tag of almost $600. It is unfathomable. Thanks to the Inflation Reduction Act, the price of my Xarelto will be lowered to $197 per month. I will be able to feel free from health and financial stress and be able to enjoy life a little more.”
Sheldon ArmusFlorida
Big Pharma’s 20-year prohibition on Medicare negotiation came to an end with the Inflation Reduction Act, and now we’re working tirelessly to protect this landmark victory. Not too long after the law was passed, major pharmaceutical corporations and their allies filed lawsuits to undermine Medicare negotiation and through our US v. Pharma campaign, we are mobilizing to defend the program against the multi-million dollar legal challenges. We have signed on to seven amicus briefs and through our own submitted briefs we’re amplifying the voices of patients harmed by high drug prices, to ensure their stories are heard in the courts and in the public arena.