Report Finds Big Drug Companies Raked in Nearly $29 Billion in Profits & Spent Over $28 Billion Rewarding Shareholders In Just The First Three Months of 2024
Washington, DC — U.S. Senator Peter Welch (D-VT) and U.S. Representative Debbie Dingell (D-MI-06) joined Protect Our Care to call out big pharmaceutical companies for continuing to put profits over patients. During the call, Protect Our Care released a new report summarizing big drug companies’ recent investor reports, demonstrating how they are raking in profit and rewarding shareholders while more than 1 in 3 Americans are cutting pills or skipping doses because they can’t afford their medication.
The report is the latest in Protect Our Care’s Greed Watch series, highlighting the hypocrisy of big drug companies. While drug companies are raking in billions, they are working to undermine the Inflation Reduction Act by filing lawsuits and increasing their lobbying to protect their profits. Drug companies have been working behind the scenes with Republican lawmakers to repeal all of the Inflation Reduction Act’s provisions aimed at making prescription drugs more affordable for seniors. Big drug companies claim that the new law to make drugs more affordable will harm patients, but in reality, they’re telling investors the opposite and spending billions on rewarding their investors through stock buybacks and dividends, paying their executives millions, and spending millions lobbying to keep their prices high.
“For too long, pharmaceutical companies have cashed in on the vulnerabilities of patients needing access to life-saving medication, charging patients sky-high prices with no repercussions. We’re working to change that,” said Senator Peter Welch (D-VT). “I’m fighting in the Senate to advance legislation that builds off our success in the Inflation Reduction Act, bringing more prescription drugs to negotiation, faster and sooner. Seniors and families shouldn’t be forced to put up with Big Pharma’s greed, and Congress shouldn’t let Big Pharma off the hook.”
“Democrats are fighting every day to confront pharmaceutical companies who are putting profits over patients and are making billions of dollars at the expense of hardworking Americans,” said Representative Debbie Dingell (D-MI-06). “The Inflation Reduction Act is a landmark piece of legislation, and we’re already seeing the impacts and the cost savings for people across the country. Unfortunately, big drug companies continue to charge some of the highest prices in the world for the vital medicines that Americans need to stay healthy. If you’re sick in this country, and you need medicine, you should be able to get it, no matter who you are or where you live.”
“Today we’re putting drug company greed on full display,” said Protect Our Care Chair Leslie Dach. “While drug companies are claiming they need to charge Americans more than anyone in the world for prescription drugs, they are celebrating massive profits on Wall Street. The Inflation Reduction Act is reining in drug prices for patients by stopping outrageous price hikes, capping costs for seniors, and giving Medicare the power to negotiate lower prices. President Biden and Democrats took on Big Pharma and won, but drug companies and their Republican allies are not backing down on their fight to rip away all of this progress and make it even harder for patients to get the drugs they need to survive.”
Key Report Findings:
Big drug companies started off 2024 by raking in $29 billion in profits. In the first three months of 2024, 15 of the biggest drug companies reported nearly $173 billion in revenue and nearly $29 billion in net profits – eye-popping figures that reflect the record-high prices these companies charge for drugs.
The drug companies suing to block Medicare from negotiating lower prices brought in billions in revenue and profits, and spent lavishly to reward shareholders. In the first three months of 2024, the ten drugs selected for Medicare’s first round of negotiations brought in $16.5 billion in revenue, while the companies that manufacture these drugs raked in $25.4 billion in combined profits and spent nearly $26 billion rewarding shareholders in the form of stock buybacks and dividends.
***MEDIA ADVISORY FOR MAY 6 AT 1:30PM PT // 4:30 PM ET***
The Inflation Reduction Act gave Medicare power to negotiate drug prices for the first time
Los Angeles, CA – Today, Dr. Meena Seshamani, MD, Ph.D., Deputy Administrator of the Centers for Medicare and Medicaid Services and Director of the Center for Medicare, will join Protect Our Care California and local seniors and advocates to discuss how Medicare negotiations will lower prescription drug costs for seniors in California. The Biden administration recently announced the next phase of the Medicare Drug Price Negotiation program, a step which will lower prices for some of the highest-cost prescription drugs that seniors rely on to treat conditions like cancer, diabetes, and autoimmune disorders – conditions that disproportionately impact women, communities of color, and people in rural areas. Speakers will explain what this means for seniors in California and how lowering the cost of health care and prescription drugs remain central to the Inflation Reduction Act’s popularity, and the importance of protecting these policies. A recent Navigator poll found overwhelming support for health care policies passed by Congress during the Biden administration, including reforms in the Inflation Reduction Act.
Speakers will also highlight all of the new cost-saving benefits for seniors in the Inflation Reduction Act, including:
Medicare negotiation for lower drug prices
A $35 monthly copay cap on insulin
Free shingles and other essential vaccinations
$2,000 out-of-pocket caps on prescription drugs beginning in 2025
This event comes as drug companies and their allies are trying to derail health care policies that will bring down costs. Pharmaceutical companies are suing the federal government to protect their massive profits by halting the Medicare negotiation provision while their Congressional allies are attempting to repeal it. President Biden and his administration are already working to expand these cost savings to more Americans, and hold Big Pharma accountable. If opponents of the Affordable Care Act get their way, they would throw millions of people off of Medicaid, keep drug costs high for seniors, and make health care coverage more expensive for families purchasing coverage on their own through the Affordable Care Act.
WHO: Dr. Meena Seshamani, MD, Ph.D., Director of the Center for Medicare Santa Monica Mayor Phil Brock Santa Monica Councilmember Gleam Davis President of the Los Angeles County AMA Dr. Jerry Abraham Former President of the Los Angeles County Medical Association Dr. Sion Roy CARA Leader Bonnie Coleman President of the Long Beach Gray Panthers Karen Reside Nicole Serrano, Protect Our Care California
WHEN:
Monday, May 6, 2024 at 1:30 PM PT // 4:30 PM ET
WHERE:
Virginia Avenue Park, Thelma Terry Room, 2200 Virginia Avenue, Santa Monica, CA 90404
***MEDIA ADVISORY FOR TUESDAY, MAY 7 AT 1:00 PM ET***
A New Report From Protect Our Care Shows How Drug Companies Started Off 2024 by Raking in Eye-Popping Profits
Washington, D.C. – On Tuesday, May 7, 2024 at 1:00 PM ET, U.S. Senator Peter Welch (D-VT) and U.S. Representative Debbie Dingell (D-MI-06) will join Protect Our Care for a press conference to discuss how big pharmaceutical companies are putting profits over patients. During the call, Protect Our Care will release a new report summarizing big drug companies’ recent investor reports, demonstrating how they are raking in profit and rewarding shareholders while more than 1 in 3 Americans are cutting pills or skipping doses because they can’t afford their medication.
This call comes at a time where pharmaceutical giants are laser-focused on undermining the Inflation Reduction Act by filing lawsuits and increasing their lobbying to protect their profits. Drug companies have been working behind the scenes with Republican lawmakers to repeal all of the Inflation Reduction Act’s provisions aimed at making prescription drugs more affordable for seniors. Big drug companies claim that the new law to make drugs more affordable will harm patients, but in reality, they’re telling investors the opposite and spending billions on rewarding their investors through stock buybacks and dividends, paying their executives millions, and spending millions lobbying to keep their prices high.
PRESS CALL:
WHO: U.S. Senator Peter Welch (D-VT) U.S. Representative Debbie Dingell (D-MI-06) Leslie Dach, Protect Our Care
Representatives Gwen Moore, Adriano Espaillat, Hillary Scholten, HHS Regional Directors Michael Cabonargi, Melissa Herd, Antrell Tyson, Local Leaders, and Health Care Advocates Headline Events Across the Nation.
This April was the seventh annual Medicaid Awareness Month. Protect Our Care hosted nationwide events to recognize the crucial role Medicaid plays in Americans’ health care and highlight how recent Republican attacks come at a time when more Americans than ever before are relying on the program. Over 85 million Americans are enrolled in Medicaid, which provides affordable care to people from all backgrounds, especially people with disabilities, people with mental health and substance use disorders, children, pregnant women, seniors in nursing homes, rural Americans, and people of color. But Republicans haven’t stopped their attacks. The latest GOP budget proposal slashes trillions from Medicaid through block grants, calls for work reporting requirements, and other bureaucratic measures designed to throw people off their coverage. GOP leaders in 10 states have failed to expand Medicaid under the Affordable Care Act (ACA), blocking 1.6 million people from lifesaving coverage. Medicaid has strengthened local economies, providedAmericans with access to quality, affordable health care, and improved health outcomes across the country.
Monday, April 1 – Protect Our Care released a new national report detailing Republican plans to slash Medicaid and rip coverage away from millions of Americans. While Medicaid Awareness Month is a celebration of how this vital health care program has touched millions of families across the nation, it is also an important reminder that Medicaid remains under attack by Republicans. Read the full report here.
Tuesday, April 9 – Protect Our Care released a new video in celebration of the seventh annual Medicaid Awareness Month this April. One in four Americans rely on Medicaid for access to health care. Medicaid coverage saves lives and improves health outcomes nationwide, serving people from all backgrounds, including children, mothers, people of color, working families, people with disabilities, rural Americans, and seniors. Watch the video here.
ARIZONA
Wednesday, April 17 – Medicaid Awareness Month Virtual Event with Leading Arizona Health Care Experts: Arizona health care advocates from Children’s Action Alliance, Arizona Alliance for Retired Americans, Valle del Sol Community Health Center, Chicanos Por La Causa joined Protect Our Care Arizona to discuss the importance of Medicaid and how expanding the program has benefited Arizonans of all ages. “The Affordable Care Act expansion of Medicaid to lower-income adults is preventing thousands of premature deaths for adults aged 55 to 64,” said Claudia Boyer, Director of Resource Navigation Systems for Chicanos Por La Causa. “Together AHCCCS and Kids Care are responsible for record-high rates of health insurance for kids nationally and in Arizona. They help protect families from medical debt, give them peace of mind, and allow their kids to grow up healthy and succeed in life,” said Matt Jewett, Health Policy Director for Children’s Action Alliance.You can watch the event here and view the post-event release here.
CALIFORNIA
Thursday, May 2 — Medicaid Awareness Month Virtual Event with Los Angeles County Medical Association and California Health Care Advocates:Los Angeles County AMA President Dr. Jerry Abraham and President of the Long Beach Gray Panthers Karen Reside joined Protect Our Care California to highlight the vital role the Medicaid program serves in providing affordable health care coverage and access to services for Californians. “Over a third of our state benefits from Medicaid and as a result many lives have been saved under this program,” said Los Angeles County AMA President Dr. Jerry Abraham. “We know access to care is critical to living our best lives. At this time, Republican leaders are attacking a lifeline to our community and we’re not going to let that happen – we’re going to continue fighting to protect our care.” You can watch the event here, and view the post-event release here.
GEORGIA
Wednesday, May 1 – Medicaid Awareness Month Event with HHS Regional Director Antrell Tyson and Georgia Health Care Advocates: Antrell Tyson, US Health and Human Services Regional Director for Region 4, Yolanda Pickstock, an Atlanta-based healthcare advocate with Georgia Stand-Up and Glenda Battle, a retired nurse from Leesburg, joined Protect Our Care Georgia to mark the seventh annual Medicaid Awareness Month and call on Republicans to expand Medicaid and provide coverage to the thousands of Georgians who currently live in the coverage gap and cannot access care. Speakers also highlighted the vital role that Medicaid expansion would serve in providing health care coverage and access to services for Georgians with disabilities, people with mental health and substance use disorders, children, pregnant women, seniors in nursing homes, rural families, and people of color. “Enrollment in Medicaid has increased by 52 percent nationally since 2013. Unfortunately, this figure doesn’t include as many Georgians as it could have. Without Medicaid expansion, Georgia ranks 48th out of 50 states for coverage rates. An estimated 431,000 Georgians could benefit from the affordable healthcare that Medicaid expansion would provide if the state expanded,” said Antrell Tyson, US Health and Human Services Regional Director for Region 4. You can watch the event here, and view the post-event release here.
MICHIGAN
Thursday, May 2 – Medicaid Awareness Month Event with Congresswoman Hillary Scholten, DHHS Regional Director Michael Cabonargi, and Advocates: U.S. Congresswoman Hillary Scholten and U.S Department of Health and Human Services Regional Director Michael Cabonargi joined Protect Our Care Michigan to highlight the vital role the Medicaid program serves in providing affordable health care coverage and access to services for Michiganders.“The importance of Medicaid continuation is critical to everyone whether they live in the urban core in Grand Rapids or the rural parts of Ottawa and Muskegon counties stretching between the lake shore and the city,” said U.S. Congresswoman Hillary Scholten. “When people are healthy they are more able to work, care for their families and live successful and prosperous lives. When they are healthy, our communities are healthy.” You can watch the event here, and view the post-event release here.
PENNSYLVANIA
Thursday, April 25 – Medicaid Awareness Month Event with HHS Regional Director Melissa Herd, Pennsylvania HHS Secretary Val Arkoosh, and Advocates: HHS Regional Director Melissa Herd, Dr. Val Arkoosh, Secretary of the Pennsylvania Department of Human Services, Devon Trolley, Executive Director of Pennie and Antoinette Kraus, of the Pennsylvania Health Access Network will join Protect Our Care Pennsylvania to highlight the vital role the Medicaid program serves in providing affordable health care coverage and access to services for Pennsylvanians. “Medicaid serves as a crucial safety net, offering vital assistance to families facing the greatest need,” said HHS Regional Director Melissa Herd. “The Biden-Harris Administration is firmly committed to preserving Medicaid coverage for eligible individuals.” You can watch the event here, and view the post-event release here.
Coverage:
WTXF: Department of human services officials join protect our care to emphasize the importance of affordable health care coverage
NORTH CAROLINA
Thursday, April 25 – Medicaid Awareness Month Event with North Carolina Senator Gladys Robinson, Rep. Sarah Crawford, and North Carolina HHS Secretary Kody Kinsley: North Carolina DHHS Secretary Kody Kinsley, State Senator Gladys Robinson, and State Representative Sarah Crawford will join Protect Our Care North Carolina to highlight the vital role the Medicaid program serves in providing affordable health care coverage and access to services for North Carolinians. “When the legislature was considering Medicaid Expansion, some were saying that even if we passed the legislation, it would take a long time to actually get all the people eligible enrolled in Medicaid,” said Rep. Sarah Crawford (NC-66). “I am here to tell you that North Carolina has had one of the most successful rollouts in the country – maybe the most successful rollout. Since December 1, because of the great work of Governor Cooper, DHHS Secretary Kody Kinsley, and our county offices, more than 400,000 people have already been enrolled in Medicaid, with the majority of those ages 19-39 who would have otherwise not had health coverage.” You can watch the event here, and view the post-event release here.
NEVADA
Thursday, April 18 – Medicaid Awareness Month Event with Senate Majority Leader Nicole Cannizzaro and Advocates: Senate Majority Leader Nicole Cannizzaro and Holly Welborn, Executive Director of Children Advocacy Alliance joined Protect Our Care Nevada to highlight the vital role the Medicaid program serves in providing affordable health care coverage and access to services for Nevadans. One in four Americans relies on Medicaid for access to health care, and the program serves people from all backgrounds, including children, mothers, people of color, people with disabilities, working families, rural Americans, and seniors. “Medicaid covers more than 40% of births in the United States. “Thanks to the American Rescue Plan, states were given the option to extend coverage to new mothers for one year postpartum, which improves maternal health outcomes,” said Senate Majority Leader Nicole Cannizarro. “In Nevada, I made that permanent by sponsoring and passing Senate Bill 232. New mothers in Nevada went from having 2 months of postpartum coverage to 12 months.” You can watch the event here, and view the post-event release here.
KTVN (CBS): Democratic leaders join Protect Our Care to discuss providing health coverage to low income families
Friday, April 26 – Reno Gazette Journal Op-Ed by State Representative Michelle Gorelow on Protecting Medicaid: Protect Our Care Nevada placed an opinion piece in Reno Gazette Journal by State Representative Michelle Gorelow. In the piece, Gorelow highlights the importance of protecting Medicaid from Republican threats. Gorelow writes, “High-quality and affordable health care should be treated as a right, not a privilege, for everyone in America. Yet Republicans are waging war on our health care by seeking broad and devastating cuts to Medicaid that would raise costs and rip away coverage from millions of Americans, including numerous women and children in Nevada.” You can read the full op-ed here.
NEW YORK
Tuesday, April 30 – Medicaid Awareness Month Event with Congressman Adriano Espaillat, Dr. Dara Kass, and New York Health Care Advocates: New York Congressional Representative Adriano Espaillat (NY-13), former HHS Regional Director Dr. Dara Kass, and representatives from 1199SEIU and Metro NY Healthcare for All joined Protect Our Care New York for a virtual press conference to highlight the vital role the Medicaid program serves in providing affordable health care coverage and access to services for New Yorkers. “National politics set the stage for New York’s healthcare system, especially when it comes to Medicaid,” said Dr. Dara Kass, former HHS Director. “New York takes every opportunity to expand care and make Medicaid accessible and affordable for those who need it most. Under the Biden-Harris Administration, Democrats in Congress have worked with Centers for Medicare and Medicaid Services (CMS) on life-saving expansions, including lowering Medicaid’s income eligibility threshold. That’s all on the line if former President Trump is re-elected and empowered by a Republican Congress to remove these expansions, threatening access to affordable, quality care.” You can watch the event here, and view the post-event release here.
Coverage:
NY1 Noticias: ‘Necesitamos más doctores que acepten el Medicaid’: representante de servicios comunitarios
Friday, April 26 – Long Island Herald Op-Ed by Health Care Advocate Joseph Sackman on Protecting Medicaid: Protect Our Care New York placed an opinion piece in The Long Island Herald by local health care advocate Joseph Sackman. In the piece, Sackman calls out Rep. Anthony D’Esposito for his part in the Republican threats against Medicaid. Sackman writes, “While Medicaid provides financial security and access to health care to more New Yorkers than ever before, Republicans in Congress, including Rep. Anthony D’Esposito, are threatening Medicaid by pushing for devastating cuts to key federal programs. Earlier in his tenure, D’Esposito claimed to support fully funding critical lifeline programs like Social Security, Medicare and Medicaid. He has gone back on this promise time and time again, however, including supporting a provision that would slash nearly all government funding by 30 percent. Long Island families are already grappling with financial hardships, including difficulties affording mortgages, utilities and groceries. Cutting funding to critical safety-net programs like Medicaid would directly harm hard-working families who are just trying to find health care for their loved ones and make ends meet.” You can read the full op-ed here.
OHIO
Tuesday, April 30 – Medicaid Awareness Month Event with Maumee City Councilmember Scott Noonan and Local Health Care Advocates:Northwest Ohio leaders and health care advocates joined Protect Our Care Ohio to highlight the vital role the Medicaid program serves in providing affordable health care coverage and access to services for Ohioans. “There have been constant attacks on Medicaid by Republicans – and it is very troubling,” said Maumee City Councilmember Scott Noonan. “On the local level, as a City of Maumee council member, I am especially concerned about what cuts to the program would mean to the 12% of people with substance abuse issues who are on Medicaid. We have several health centers here for people struggling with substance abuse, and Medicaid cuts could lead to very serious problems when it comes to helping these individuals and could lead to more opioid overdoses. As a disability rights advocate, the attacks on Medicaid are also jarring because about 15% of people who use the program are people with disabilities.” You can watch the event here, and view the post-event release here.
VIRGINIA
Friday, April 26 – Medicaid Awareness Month Event with Delegates Sickles, Srinivasan, and Willett and Advocates: House Health and Human Services Chair Mark Sickles, Chair of the Select Committee on Advancing Rural and Small Town Health Care Rodney Willett and former Chair of the State Board of Medical Assistance Services Delegate Kannan Srinivasan joined advocates, storytellers, and Protect Our Care Virginia for a virtual press conference celebrating the sixth anniversary of Medicaid expansion and the seventh annual Medicaid
Awareness Month. “Forty-five percent of the health coverage in small towns and rural areas comes from Medicaid right now. So it’s a huge percentage of folks being cared for,” said Delegate Rodney Willett. “Medicare is helping to close this health care disparity gap that we have. Medicaid expansion cut the uninsurance rates in those areas by more than 50 percent. It really is enabling so many Virginians who otherwise would not get health insurance to get that.” You can watch the event here, and view the post-event release here.
Coverage:
VPM: Delegate Srinivasan discussed Medicaid’s expansion in Virginia
BlueVirginia: Delegates Join Advocates and Protect Our Care Virginia to Celebrate Sixth Anniversary of Medicaid Expansion and Its Impact on Rural Virginia
WISCONSIN
Tuesday, April 30 – Medicaid Awareness Month Event with Representative Gwen Moore, State Representative Robyn Vining, and Advocates: Representative Gwen Moore and State Representative Robyn Vining joined advocates and Protect Our Care Wisconsin for a virtual press conference to mark the seventh annual Medicaid Awareness Month and call on Republicans to expand Medicaid and provide coverage to the thousands of Wisconsinites who currently live in the coverage gap and cannot access care. “Everybody knows somebody who needs Medicaid, and it is a disgrace that Wisconsin is one of just ten states that has not expanded Medicaid,” said Congresswoman Gwen Moore. “When Wisconsin first rejected Medicaid expansion the state budget took a $250 million hit, now that’s up to $1.6 billion – monies that Wisconsin is leaving on the table because of (Republicans) partisan refusal to expand Medicaid.” You can watch the event here, and view the post-event release here.
Coverage:
Wisconsin Examiner: Wisconsin lawmakers call for expanded Medicaid coverage for new mothers
***MEDIA ADVISORY FOR THURSDAY, MAY 2, AT 9:30 AM ET***
Protect Our Care is Highlighting Medicaid’s Critical Role in America and Making Clear the Dire Consequences of Potential Cuts to Medicaid Funding
Lansing, Michigan — On Thursday, May 2, at 9:30 AM, U.S. Representative Hillary Scholten (D-MI-03) and U.S Department of Health and Human Services Regional Director Michael Cabonargi will join Protect Our Care Michigan to highlight the vital role the Medicaid program serves in providing affordable health care coverage and access to services for Michiganders. One in four Americans relies on Medicaid for access to health care, and the program serves people from all backgrounds, including children, mothers, people of color, people with disabilities, working families, rural Americans, and seniors.
In April, we wrapped theseventh annual Medicaid Awareness Month. Speakers will discuss what President Biden and Democrats in Congress have done to strengthen Medicaid in the face of ongoing attacks from Republicans who want to severely cut funding for the program and limit access to care.
Democrats have created incentives for states to expand Medicaid through the Affordable Care Act, stopped onerous work requirements, pushed for expanded postpartum coverage, and worked to minimize the impacts of Medicaid unwinding. Meanwhile, Republicans have proposedslashing trillions of dollars from Medicaid through capping federal funding and other draconian measures designed to reduce the number of Medicaid beneficiaries through bureaucratic tripwires that kick them off the program. If Republicans get their way and repeal Medicaid expansion, about 1 million Michiganders’ coverage will be at risk. When it comes to health care, the contrast between Democrats and Republicans health care agenda couldn’t be clearer.
WHO: U.S. Representative Hillary Scholten (D-MI-03) U.S. DHHS Regional Director Michael Cabonargi Ashlea Phenicie, Chief Advocacy Officer, Planned Parenthood of Michigan Chloe Bayer, Benefits Specialist, Disability Advocates of Kent County. Kristen Kelling, Kent County resident living with a disability
May is Older Americans Month, and Protect Our Care is highlighting how new policies have lowered health care costs for seniors. Specifically, President Biden’s Inflation Reduction Act is helping older Americans get lifesaving care while giving them breathing room to pay for other essentials. In addition to lowering health care premiums through the Affordable Care Act (ACA) marketplaces, the Inflation Reduction Act has capped insulin costs at $35 per month, made essential vaccinations free, and penalized big drug companies for raising prices faster than inflation. Soon, people on Medicare will pay no more than $2,000 a year on prescription drugs, and they will be able to take advantage of savings under Medicare negotiation. Together, these provisions are saving seniors thousands of dollars on their health care.
President Biden and Democrats in Congress have also worked tirelessly to protect and strengthen Medicaid. Medicaid remains a critical source of coverage as Americans age, serving as a primary funder for long-term care and filling many of the gaps in Medicare coverage, such as premium costs, transportation to medical appointments, and medical equipment. 18.2 million Americans aged 50and up rely on Medicaid coverage. Without Medicaid, millions of seniors would be forced to go without lifesaving care.
All of this progress is under attack by Republicans. Every single Senate and House Republican voted against the Inflation Reduction Act, and they are still fighting to keep prescription drug costs high. By fighting to repeal the Inflation Reduction Act, Republicans are working with big drug companies and turning their backs on the American people — despite the law’s vastsupport from voters of all parties. Republican lawmakers are also working toslash trillions from Medicaid, which would throw millions of people off their coverage through block granting and burdensome work reporting requirements. Republican efforts to repeal the Inflation Reduction Act and cut Medicaid funding puts millions of older Americans’ health in jeopardy.
By the Numbers: The State of Health Care for Older Adults Across America
Thanks to the Inflation Reduction Act
Insulin is capped at $35 per month.4 million Americans on Medicare who use insulin are now charged no more than $35 per month for an insulin prescription.
People on Medicare can get recommended vaccines for free. 50.5 million Medicare beneficiaries are able to receive the shingles vaccination and other recommended vaccinations free of cost.
Drug companies are penalized for outrageous price hikes. Seniors on Medicare will be protected from drug company price hikes thanks to increased inflation rebates.
Medicare is negotiating lower drug prices.Nearly 9 million people take the first ten drugs that were selected for Medicare negotiation. These drugs account for 20 percent of the annual Medicare Part D spending. Negotiated prices will take effect in 2026.
More seniors can access affordable medications. 400,000 low-income seniors will receive more help affording prescription drugs through the Medicare Part D Extra Help program.
Drug costs will be capped at $2,000 for everyone on Medicare. In 2025, out-of-pocket costs in Medicare Part D will be capped at $2,000, saving nearly 19 millionAmericans an average of $400 each year. This year, drug total out-of-pocket costs are capped at $3,250. These caps especially help people with serious conditions like cancer, diabetes, and arthritis.
Medicare Negotiation For Lower Drug Prices. Right now, the Biden administration is implementing the Medicare Drug Price Negotiation Program, which is supported by over 80 percent of Americans — the most popular provision in the Inflation Reduction Act. In August 2023, the first round of high-cost drugs that will be negotiated was announced: Eliquis, Jardiance, Xarelto, Januvia, Farxiga, Entresto, Enbrel, Imbruvica, Stelara, and Fiasp/ NovoLog. These high-cost drugs treat conditions like cancer, diabetes, and blood clots. The first ten drugs selected for negotiation are taken by nearly 9 million people on Medicare, who spent $3.4 billion in out-of-pocket costs last year alone. The negotiated prices will be effective starting in 2026.
Lower Insulin Costs For Seniors.The Inflation Reduction Act is helping insulin-dependent seniors afford and take their medication as prescribed. In 2020, there were more than 3.2 million insulin users with Medicare. On average, seniors with Medicare Part D or B who are not receiving subsidies pay an average of $572 every year for this life-saving medication — an unthinkable sum for many on fixed incomes. Patients who suffer chronic complications can expect to pay upwards of an additional $650 per year. Under the Inflation Reduction Act, insulin copays for people on Medicare are capped at $35 per prescription each month. A recent study showed that 1.5 million people on Medicare would have saved an average of $500 in 2020 from the $35 insulin copay cap. People have also been more likely to fill their prescriptions since the implementation of the insulin copay cap.
Protections From Price Hikes For Seniors. The Inflation Reduction Act penalized drug companies for raising drug prices faster than the rate of inflation starting at the beginning of 2023. An analysis by KFF showed that half of all drugs covered by Medicare had list price increases exceeding the rate of inflation in 2020. For example, Humira, a medication commonly used to treat rheumatoid arthritis, is one of the nation’s highest revenue-generating drugs, raking in $21 billion in sales in 2019. AbbVie, Humira’s manufacturer, has hiked the price of Humira 27 times, including in January 2021 when it raised its cost by 7.4 percent. Over the past 20 years, price increases for brand-name drugs in Medicare Part D have risen at more than twice the rate of inflation.
Free Vaccinations. Thanks to the Inflation Reduction Act, 50.5 million seniors are eligible for no-cost shingles vaccinations. In 2020, nearly 4 million Medicare beneficiaries received the two-part shingles vaccination. With a single shot of Shingrix costing $212, seniors on Medicare Part D are saving over $400 on average on vaccinations in 2023. The high out-of-pocket cost of the shingles vaccine has been a key factor in low vaccination rates, especially among Black and Latino communities. This extends an important affordable preventive service to seniors on Medicare; Americans with private insurance could already typically receive shingles vaccinations at no cost.
Out-Of-Pocket Caps For Seniors. The Biden administration’s Inflation Reduction Act will save Americans an average of $396 thanks to the $2,000 annual cost cap, which begins in 2025. To help seniors with the highest drug costs starting in 2024, the Act will save over 38 million Americans an average of $462 because they will no longer have to pay a 5% coinsurance when they reach the catastrophic phase of the Part D benefit.
The GOP War on Health Care Threatens Older Adults Across the Nation
Republicans Want To Cut Medicaid Through Block Grants And Work Reporting Requirements. Republicans are fighting to cut trillions from Medicaid, which would harm millions of older adults who rely on these programs.7.2 million Americans over 65 are enrolled in Medicaid and more than 11 million Americansages 50 to 64 have health coverage through Medicaid – many thanks to the Affordable Care Act’s Medicaid expansion. Medicaid fundsnearly half of long-term care nationwide. As seniors age, long-term care services become more essential, serving about70 percentof seniors who will need some form of long-term care in their lives.
Republicans Want To Repeal The Inflation Reduction Act And Hike Drug Costs. Big drug companies’ GOP allies in Congress have introduced legislation to repeal the Inflation Reduction Act, which would hike drug costs for millions of seniors. In 2023, Senator Mike Lee reintroduced legislation that would not only repeal Medicare’s new ability to negotiate lower drug prices but would also repeal the new penalties on drug companies that increase prices faster than inflation, and roll back the new $2,000 out-of-pocket spending cap on drug costs for those on Medicare. The Republican Study Committee also released a budget proposal that repeals the Inflation Reduction Act’s Medicare negotiation program entirely. Repealing the Inflation Reduction Act will raise costs for seniors, making it more difficult for them to afford their lifesaving medications, and put money back into the pockets of big drug companies.
Republicans Want To Repeal The Affordable Care Act. Republicans have repeatedly called for repeal of the ACA since its conception. Donald Trump has promised to overturn the ACA at least seven times last year. Overturning the ACA will put older Americans at risk who are currently benefiting from protections guaranteed by the ACA. The law limits the amount older people can be charged to three times more than younger people.If Republicans got their way and repealed the ACA, it would add an average “age tax” of $4,124 for a 60-year-old in the individual market, according to AARP. People who buy insurance on their own, especially early retirees, have been able to save thousands on health insurance thanks to the enhanced premium subsidies passed in the Inflation Reduction Act.
Republicans Are Blocking Medicaid Expansion Across 10 States. 10 states have refused to expand Medicaid under the Affordable Care Act (ACA), stranding many seniors with low incomes in the Medicaid coverage gap. As a result, over 407,000 older Americans with incomes below the federal poverty level are ineligible for Medicaid or ACA marketplace assistance in these states. Over half of these individuals reside in Texas or Florida, and seniors from at least 25 percent of those in the Medicaid coverage gap in Tennessee, Alabama, Georgia, South Carolina, and Florida.
Over 10,000 Older Americans Died Prematurely Due To States’ Decisions Not To Expand Medicaid. Due to states’ decisions not to expand Medicaid under the ACA, 10,444 older Americans died prematurely between 2014 and 2017 alone in the 10 states that have refused to expand the program.
New Navigator polling found that President Biden and Democrats are more trusted on health care. From making prescription drugs more affordable to protecting Medicare, Democrats have a major advantage. This follows Navigator data released yesterday showing that seven in 10 Americans (71 percent) support the Inflation Reduction Act, with large majorities supporting the law’s health care policies to cap the cost of insulin, provide free vaccines, and give Medicare the power to negotiate lower drug prices. A closer look:
Voters Across Parties Support The Inflation Reduction Act’s Measures To Lower Drug Prices. The poll shows a growing share of support for the Inflation Reduction Act, including nearly half of Republicans.Capping the cost of insulin (87 percent), providing free vaccines (87 percent), and giving Medicare the power to negotiate (87 percent) are among the most supported health care policies under President Biden. [Navigator, 4/30/24]
Voters Strongly Support Messages About Bringing Down Prescription Drug Costs. Strong majorities support messages about bringing down costs and making sure Americans aren’t charged three to four times more than people in other countries. According to Navigator, “Focusing on bringing down prescription drug costs overwhelmingly defeats arguments about drug regulations harming innovations and concerns about debt from health care spending.” [Navigator, 5/1/24]
Voters Report Concern Over Drug Company Profits While Americans Struggle To Afford Their Medications. The poll found that drug company favorability remains low (34 percent) and that voters are highly concerned about drug company profits. Per Navigator: “The strongest criticisms of big pharmaceutical companies focus on their record-breaking profits while Americans cannot afford the prescription drugs they need.” [Navigator, 5/1/24]
Washington, D.C. — May marks Asian American, Native Hawaiian, and Pacific Islander (AA and NHPI) Heritage Month, and Protect Our Care is highlighting how the Inflation Reduction Act has expanded coverage, lowered costs, and improved care for AA and NHPI communities across the nation. For AAs and NHPIs in particular, these lower costs are translating to better access to care for people who have historically been marginalized and faced difficulty receiving the care they need.Protect Our Care Chair Leslie Dach issued the following statement:
“This month, we are celebrating the progress made by lawmakers to make health care more affordable, accessible, and equitable for Asian Americans, Native Hawaiians, and Pacific Islanders. While President Biden and Democrats in Congress are working to build on this progress and lower costs, Republicans are fighting to repeal the Inflation Reduction Act, hike drug costs, and rip coverage away from millions of families. The GOP agenda disproportionately threatens the health and economic security of communities of color.”
Background
AA and NHPIs have historically faced greater barriers to achieving and maintaining optimal health. The 25.2 million Asian Americans living in the U.S. have long been more likely to suffer from chronic health conditions like kidney failure, heart disease, and hypertension, and Asian American seniors are more likely to report difficulty affording prescription medications. Likewise, the 1.5 million Native Hawaiians and Pacific Islanders living in the U.S. are significantly more likely to suffer from diabetes and certain forms of cancer. Many AA and NHPIs also contend with longstanding health and economic inequities that make it even harder to get by for those relying on expensive medications to stay healthy.
The Inflation Reduction Act is lowering health care and prescription drug costs for AA and NHPIs, and will address disparities in access and outcomes.The Biden-Harris administration, consistent with their commitment to advancing racial equity for underserved communities, is implementing the Inflation Reduction Act, which includes a number of programs that lower health care premiums and prescription drug costs. A closer look at how the Inflation Reduction Act is helping AA and NHPIs across the nation:
Capping monthly insulin costs for people on Medicare at $35. Approximately 31,000 Asian American Medicare enrollees save approximately $500 annually due to the $35 insulin cap.
Making recommended vaccines free to people on Medicare. More than 1.8 million Asian Americans and Pacific Islanders enrolled in Medicare Part D can now receive free vaccines. The low-income subsidy, which saves beneficiaries an estimated average of $5,300 a year, disproportionately serves AA and NHPI beneficiaries.
Adding a $2,000 annual out-of-pocket prescription drug cost cap to Medicare in 2025. The $2,000 out-of-pocket cap could save Asian American enrollees an average of 31 percent in out-of-pocket costs.
Lowering drug prices by allowing Medicare to negotiate with drug companies. More than half of the first ten drugs selected for Medicare price negotiations treat conditions that disproportionately impact AA and NHPIs.
Lowering out-of-pocket premiums for people who buy their own insurance. Lower out-of-pocket insurance premiums have led to a 6 percent increase in enrollment for this population when Native Hawaiians and Pacific Islanders face higher rates of uninsurance than white Americans.
