Drug price negotiations under Inflation Reduction Act will save taxpayers billions – Daily Press

President Joe Biden says making necessary medicines affordable is about dignity, hope and justice. Those words embody the Biden-Harris administration's work to implement the President-introduced Prescription Drug Cost Reduction Act, also known as the Inflation Reduction Act. This month marks a historic milestone as the Biden-Harris administration announced new, lower prices for 10 drugs selected for the first cycle of Medicare price negotiations.

As regional director for the U.S. Department of Health and Human Services, one of my responsibilities is to spread the word about the new benefits of the Inflation Reduction Act throughout Virginia. I have spoken to many people in the region who did not know that the Medicare program is prohibited from negotiating prices directly with pharmaceutical companies on behalf of enrollees. But the Biden-Harris administration's lower-cost prescription drug bill has removed that barrier, paving the way for lower prices for beneficiaries and strengthening the promise of Medicare for our children and grandchildren.

Last year, CMS announced the 10 drugs selected for the first round of negotiations, including 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 were taking one or more of the 10 selected drugs in 2023, costing taxpayers over $56 billion. We finally have the power to reduce these costs.

On August 15, President Biden and Vice President Kamala Harris announced the new, lower prices agreed upon for these 10 drugs. These new, lower prices will go into effect on January 1, 2026 — ushering in a new era of savings for people with Medicare and the Medicare program. Had these prices gone into 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.

For example, the most commonly used drug is Eliquis, a blood thinner used by nearly 4 million Medicare beneficiaries. The current list price is $521. Under the new agreement, the price will be $231, a 56% reduction. And that's 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 more money. For more information about 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 difficult and potentially harmful choices, like forgoing necessary medications to feed the family or pay the rent. That's what our work is about – and now we're proud to usher in a new era for Medicare marked by lower prices, hope, and peace of mind.

Melissa Herd is the director of Region 3 of the U.S. Department of Health and Human Services. Region 3, based in Philadelphia, serves Delaware, Maryland, Pennsylvania, Virginia, West Virginia, and Washington, DC