The Biden-Harris Administration will begin negotiating reduced prescription prices for Medicare recipients in 2023.
The U.S. Department of Health and Human Services (HHS) revealed important dates in the first year of the Medicare Drug Price Negotiation Program, which will cut drug costs for millions of Americans under the Inflation Reduction Act. Because of the Inflation Reduction Act, Medicare will be able to negotiate prescription medication pricing for the first time in history. This approach will begin in 2023, with the first negotiated pricing taking effect in 2026.
The Inflation Reduction Act locks in approximately $800 per year cheaper health care premiums for 13 million Americans, lowers prescription drug prices for seniors, and caps out-of-pocket prescription drug spending at $2,000 per year. The Inflation Reduction Act protects recipients from catastrophic drug costs by gradually instituting a cap on out-of-pocket pharmacy costs, establishing a $35 monthly cap per insulin prescription, requiring companies that raise prices faster than inflation to pay Medicare a rebate, and allowing Medicare to negotiate prices for high-cost prescription drugs for the first time.
Americans have spent more on prescription drugs than those in other nations for decades, paying two to three times as much for identical drugs. The Biden-Harris Administration has made reducing America's excessive prescription medication costs a major objective, and the Inflation Reduction Act improves Medicare so that millions of Medicare recipients will spend less on their medicines.
For the first time, the HHS Secretary will be empowered to negotiate prescription medication pricing directly with drug makers on behalf of Medicare, beginning with a list of ten high-cost Medicare Part D pharmaceuticals!
A recent press release by the Centers for Medicare & Medicaid Services mentioned that the Biden-Harris Administration has prioritized increasing access to health insurance and decreasing healthcare costs for American families. President Biden is delivering on his promise to lower prescription drug costs, make health insurance more affordable, and make the economy work for working families by signing the Inflation Reduction Act, one of the most consequential health care laws passed since the Affordable Care Act was signed into law.
As this is a huge step towards making healthcare more affordable, it’s important to realize the impact this new change in our healthcare system will have on American people since it will let people have a bit more room in having to pay for healthcare, specifically prescription drugs.