August 15, 2024
Retirees Express Appreciation for Lower Drug Prices Due to the Inflation Reduction Act
The following statement was issued by Richard Fiesta, Executive Director of the Alliance for Retired Americans, regarding the White House’s announcement of new details about Medicare drug price negotiations:
“Today’s announcement of lower drug prices is a win for millions of seniors who take medications to treat heart disease, diabetes, and other serious conditions, who will soon pay hundreds — and in some cases thousands of dollars less — for their needed medications.
“Americans have long paid the highest prices in the world for prescription drugs, but that is finally changing. It took more than two decades of relentless activism on the ground, advocacy by thousands of Alliance members and the election of President Joe Biden and Vice President Kamala Harris to pass a law giving Medicare the power to negotiate fair drug prices for patients and taxpayers.
“The savings are staggering. The new prices are 60% lower on average, with two drugs slashed by more than 75% per month (see full list below). All told, Medicare beneficiaries will save $1.5 billion in out-of-pocket costs and taxpayers will save $6 billion in the first year alone when the new prices go into effect in 2026.
“Combined with the $2,000 out of pocket cap on drug costs that will take effect in January, millions of Americans will now be healthier and more financially secure.
“The Biden-Harris administration has taken on the powerful drug corporations and delivered for patients and families, something leaders of both parties promised and failed to do for decades. We will not forget that every Republican in the House and Senate voted against the law that requires Medicare to negotiate lower prices when it was passed two years ago.
“Even now, many Republicans want to repeal the Inflation Reduction Act and reverse the progress we have made.
“In future years, the prices of additional drugs will be negotiated and Medicare will save a total of
about $100 billion over 10 years, according to the Congressional Budget Office.
“The 4.4 million members of the Alliance will continue pushing for lower drug prices and allowing Medicare to negotiate prices for even more drugs in the future.”
The costs for a 30 day-supply of medication will now change as follows:
- Eliquis, a blood thinner from Bristol Myers Squibb and Pfizer: $231, down from $521;
- Xarelto, a blood thinner from Johnson & Johnson; $197, down from $517;
- Januvia, a diabetes drug from Merck: $113, down from $527;
- Jardiance, a diabetes drug from Boehringer Ingelheim and Eli Lilly: $197, down from $573;
- Enbrel, a rheumatoid arthritis drug from Amgen: $2,355, down from $7,106;
- Imbruvica, a drug for blood cancers from AbbVie and Johnson & Johnson: $9,319, down from $14,934;
- Farxiga, a drug for diabetes, heart failure and chronic kidney disease from AstraZeneca: $178, down from $556;
- Entresto, a heart failure drug from Novartis: $295, down from $628;
- Stelara, a drug for psoriasis and Crohn’s disease from J&J: $4,695, down from $13,836;
- Fiasp and NovoLog, diabetes drugs from Novo Nordisk: $119, down from $495.
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Contact: David Blank, dblank@retiredamericans.org
