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Negotiations on drug prices bring much-needed relief

President Joe Biden frequently says that making necessary medicines affordable is about dignity, hope and justice. Those words have been at the heart of the Biden-Harris administration's efforts to implement the President's Prescription Drug Cost Reduction Act, also known as the Inflation Reduction Act. Last week marked a historic milestone when the Biden-Harris administration announced new, lower prices for 10 drugs selected for the first cycle of Medicare drug price negotiations.

As regional director for the U.S. Department of Health and Human Services (HHS), part of my job is to promote the new benefits of the Inflation Reduction Act in North Carolina, South Carolina, Georgia, Florida, Mississippi, Alabama, Tennessee, Kentucky, and six federally recognized tribes. As I travel throughout Georgia, I have spoken with countless Georgians who were shocked to learn that until now, the Medicare program was prohibited from negotiating prices directly with pharmaceutical companies on behalf of enrollees. But the Biden-Harris administration's Lower Price Prescription Drug Act lifted that ban, paving the way for lower prices for enrollees and strengthening the promise of Medicare for our children and grandchildren.

Last year, we announced the 10 drugs selected for the first round of negotiations. They included expensive, life-saving drugs like Eliquis, a drug to prevent blood clots, and Januvia, a drug to treat type 2 diabetes. In total, about 9 million people with Medicare took one or more of the 10 selected drugs in 2023, costing taxpayers more than $56 billion. Thanks to the 2024 guidelines capping Part D copayments, 499,000 Medicare Part D enrollees in Georgia are expected to save $120 million. We're finally making a difference to reduce those costs.

On August 15, 2024, Biden and Vice President Kamala Harris announced the new, lower prices agreed to by HHS and the pharmaceutical companies involved. These new, lower prices will take effect on January 1, 2026, ushering in a new era of savings for people with Medicare and the Medicare program. Had these prices been in effect in 2023, they would have saved Medicare an estimated $6 billion, or 22% of what Medicare spent on these drugs. That's money saved for taxpayers and working families.

This is just the beginning. Under the President's law, new drugs will be selected for negotiation each year, potentially benefitting even more seniors and people with disabilities with Medicare and saving taxpayers even more money. For more information on the drugs selected for negotiation and the new prices, visit LowerDrugCosts.gov or MedicamentosBajoPrecio.gov.

Access to life-saving prescription drugs shouldn't force working families to make heartbreaking decisions like forgoing necessary medications to put food on the table or pay the rent. That's what our work to implement the law is all about – and we're proud to usher in a new era for Medicare marked by better prices, hope, and peace of mind.

Antrell Tyson is the U.S. Department of Health and Human Services regional director for North Carolina, South Carolina, Georgia, Florida, Alabama, Mississippi, Tennessee, Kentucky, and six federally recognized tribes.

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