The Inflation Reduction Act would allow older Americans to seek lower prescription drug prices at the bargaining table. The legislation also limits out-of-pocket costs of Medicare recipients at $2,000 per year.
Seniors and patient groups have long pursued a seemingly improbable goal of granting Medicare the authority to negotiate prescription drug prices.and advanced to the House would finally allow the federal health program for older Americans to seek lower prescription drug prices at the bargaining table. The legislation also limits out-of-pocket costs of Medicare recipients at $2,000 a year.
David Mitchell, founder of Patients For Affordable Drugs Now, said the Democrats' sweeping climate and health care bill, called the Inflation Reduction Act, is a hard-fought win for patients like himself.Mitchell pays more than $16,000 each year for a prescription drug he takes to treat multiple myeloma, a type of blood cancer he has battled for more than a decade. He said the annual $2,000 cap on prescription drug spending is"going to make a big difference.
Under the bill, Medicare would negotiate the cost of up to 10 retail drugs beginning in 2026. By 2029, Medicare's bargaining power would expand to 20 retail and 20 doctor-administered drugs. The bill would save the federal government anThose savings would help offset the cost of implementing a $2,000 out-of-pocket cap for older adults. Medicare recipients also would have insulin prices capped at $35 a dose.
AARP CEO Jo Ann Jenkins said her organization has fought for two decades to allow Medicare to negotiate drug prices for older Americans. He said proponents are"misleading the American people when they say this bill fixes the affordability challenges patients face. This bill provides almost no relief to millions of individuals trapped in an insurance system that discriminates against sick patients."