March 21, 2023
Biden-Harris Administration Acts to Lower Prices for 27 Drugs
On Wednesday, the Department of Health and Human Services (HHS), through the Centers for Medicare & Medicaid Services (CMS), announced 27 prescription drugs for which Medicare Part B beneficiary coinsurances may be lower from April 1 – June 30, 2023. Due to President Biden’s Inflation Reduction Act, the new law to lower prescription drug costs, some people with Medicare who take these drugs may save between $2 and $390 on average, depending on their individual coverage.
Drug corporations hiked the price for 27 drugs last quarter faster than the rate of inflation, and will have to pay the difference on those medicines to Medicare. President Biden said that in addition to those 27 drugs, more drug price cuts are coming.
The Medicare Prescription Drug Inflation Rebate Program is one of the many important tools Medicare now has to address rising drug costs. By reducing coinsurance for some people with Part B coverage and discouraging drug companies from increasing prices more briskly than inflation, HHS can lower out-of-pocket costs for some people with Medicare and reduce Medicare program spending for costly drugs.
Illinois Alliance Treasurer Katie Jordan spoke at an event on Friday in Evergreen Park, Illinois with HHS Secretary Xavier Becerra touting the developments.
“I am 95 years old, so I’ve had a chance to see a few things,” said Ms. Jordan. “I know when a law truly changes people’s lives. And President Biden and Congressional Democrats’ Inflation Reduction Act is doing that in a number of ways.”