Biden Administration Announces Historic Lower Drug Prices for Medicare Beneficiaries

Historic Negotiations:
The Biden-Harris Administration has successfully negotiated lower drug prices for Medicare beneficiaries, marking a historic first in the effort to reduce prescription drug costs.

Savings:
The new prices are expected to save millions of seniors and other Medicare beneficiaries $1.5 billion in out-of-pocket costs in the first year of the program alone. Additionally, American taxpayers are expected to save $6 billion on prescription drug costs.

Inflation Reduction Act:
The Inflation Reduction Act, signed into law by President Biden, authorized Medicare to negotiate prescription drug prices for the first time. This measure is expected to save $98.5 billion over a decade.

Drug Price Comparison:
Research has consistently shown that U.S. prescription drug prices are significantly higher, sometimes two to four times as high, compared with prices in other high-income industrialized countries.

Impact on Beneficiaries:
Over 750,000 Medicare beneficiaries annually utilize drugs that will experience reduced Part B coinsurance rates due to manufacturers raising prices above inflation levels. Through the rebate program, Medicare recipients could potentially save over $4,500 per year.