Starting in 2026, older Americans on Medicare will receive discounts on 10 widely-prescribed drugs, including Xarelto and Eliquis, to treat conditions such as blood clots, cancer, heart disease, and diabetes. The negotiations between Medicare and pharmaceutical companies will save Medicare $6 billion and seniors $1.5 billion in out-of-pocket costs. This initiative is part of President Joe Biden’s Inflation Reduction Act, which allows Medicare to negotiate prices with drug companies for a limited number of medications.
Vice President Kamala Harris, who helped pass the legislation in 2022, is expected to highlight the cost savings for seniors. However, the discounts will not apply to most working-age Americans with employer health insurance, as employers typically negotiate for lower-cost prescription drugs through insurance companies.
Other parts of the federal law allow Medicare enrollees to get recommended vaccines with no cost-sharing, limit out-of-pocket costs for insulin, and cap annual out-of-pocket expenses for prescriptions. Despite legal challenges from drug companies, negotiations with Medicare for drug prices have continued.
The Pharmaceutical Research and Manufacturers of America argue that the legislation lacks transparency, discounts patient input, and could lead to reduced investments in research for lifesaving cures. Nonetheless, supporters of the law, like Sen. Amy Klobuchar, believe it will bring financial relief to millions of older Americans struggling to afford prescription drugs. Ultimately, the goal is to make medications more affordable for seniors and improve access to necessary treatments.
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