Today, the Biden-Harris administration announced the new, lower prices for 10 of the highest-cost, most popular drugs taken by people on Medicare. These new prices are the highest prices drug companies can charge for these lifesaving medications – all made possible through the historic Inflation Reduction Act, passed by Democrats in Congress and the Biden-Harris administration in 2022, which gave Medicare the power to negotiate lower drug prices with manufacturers for the first time in history.
This announcement follows a long line of actions the Biden-Harris administration has taken to reduce prescription drug and health care costs for the American people. The Inflation Reduction Act also lowered drug prices for millions of seniors by capping insulin costs at $35 per month, limiting outrageous price hikes, and making recommended vaccines like shingles free for people on Medicare. And starting in 2025, total out-of-pocket drug costs will be capped at $2,000 per year for seniors. In 2023, 10 million seniors received a free vaccine, and HHS estimates that 19 million seniors will save $400 or more per year thanks to the out-of-pocket cap.
At the same time, Donald Trump and Republicans in Congress are fighting to roll back this progress and repeal the Inflation Reduction Act’s historic measures to lower drug prices for seniors. Just weeks after Trump’s inauguration in 2017, he dropped his promise to negotiate drug prices after meeting with big drug company lobbyists. Now, he wants to ban Medicare from negotiating down prices for millions of Americans. Repealing these policies would cost seniors billions of dollars — only putting money back in the pockets of big drug companies.
Administration
President Joe Biden: “Today, for the first time in history, my Administration is announcing that Medicare has reached agreements on new, lower prices with the manufacturers of all 10 drugs selected for the first round of drug price negotiation. […] This historic milestone is only possible because of the Inflation Reduction Act, which passed with the leadership of Democrats in Congress, and with Vice President Harris casting the tie-breaking vote in the Senate – without a single Republican voting for it. We showed that major progress can be made for the American people when we work together to take on special interests, even as Big Pharma continues to go to court to try to block lower prices for consumers. But the Vice President and I are not backing down. We will continue the fight to make sure all Americans can pay less for prescription drugs and to give more breathing room for American families.” [President Joe Biden, Statement, 8/15/24]
Vice President Kamala Harris: “Thanks to our historic work to allow Medicare to negotiate lower drug prices, millions of Americans who rely on these drugs will save on their out-of-pocket costs. While people enrolled in Medicare are expected to save $1.5 billion in 2026 alone, American taxpayers will also save an estimated $6 billion. Today’s announcement will be life changing for so many of our loved ones across the nation, and we are not stopping here. Additional prescription drugs will be selected each year as part of our Medicare drug price negotiation program. This includes up to 15 additional drugs covered under Medicare Part D for negotiation in 2025, up to an additional 15 Part B and Part D drugs in 2026, and up to 20 drugs every year after that.” [Vice President Kamala Harris, Statement, 8/15/24]
Xavier Becerra, Secretary of Health and Human Services: “Americans pay too much for their prescription drugs. That makes today’s announcement historic. For the first time ever, Medicare negotiated directly with drug companies and the American people are better off for it. Congressional budget estimators (Congressional Budget Office) predicted about $100 billion savings over 10 years from drug negotiations, and a $3.7 billion savings in the first year alone. Today we’re announcing that in our first year of negotiations we are saving Medicare an estimated $6 billion and Americans who pay out of pocket will be saving another $1.5 billion moving forward. Empowering Medicare to negotiate prices not only strengthens the program for generations to come, but also puts a check on skyrocketing drug prices.” [CMS Press Release, 8/15/24]
Chiquita Brooks-LaSure, Administrator for the Centers for Medicare and Medicaid Services: “CMS is proud to have negotiated drug prices for people with Medicare for the first time. These negotiations will not only lower the prices of critically important medications for cancer, diabetes, heart failure, and more, but will also save billions of dollars. Medicare drug price negotiation and the lower prices announced today demonstrate the commitment of CMS and the Biden-Harris Administration to lower health care and prescription drug costs for Americans. We made a promise to the American people, and today, we are thrilled to share that we have fulfilled that promise.” [CMS Press Release, 8/15/24]
Meena Seshamani, CMS Deputy Administrator and Director of the Center for Medicare: “CMS negotiated in good faith on behalf of the millions of people who rely on these 10 drugs for their health and well-being. The new negotiated prices will bring much needed financial relief, affordability, and access. Throughout the process, we remained true to our commitment to be thoughtful and transparent, meeting publicly with patients, providers, health plans, pharmacies, drug companies and others to help inform the process. We will continue to do so for future cycles. Our team is actively working on the next cycle of negotiations where we will combine what we have learned from this first cycle and apply it in negotiating prices for the next round of up to 15 selected drugs.” [CMS Press Release, 8/15/24]
Neera Tanden, White House Domestic Policy Advisor: “Because Medicare is now able to negotiate lower prescription drug prices for seniors, American taxpayers are expected to save $6 billion on these 10 drugs alone when the negotiated prices go into effect.” [The Hill, 8/15/24]
Congress
Speaker Emerita Nancy Pelosi (D-CA-11): “This is an historic and transformative day. The Inflation Reduction Act was a monumental victory in Democrats’ long fight to make prescription drugs more affordable: empowering Medicare to negotiate lower prices. Under the leadership of the Biden-Harris Administration, today’s announcement delivers billions of dollars in savings for millions of American seniors. Democrats will never stop fighting to build on this progress and keep lowering costs for America’s working families.” [X, 8/15/24]
President Pro Tempore Patty Murray (D-WA): “This is the biggest step we have taken in over a decade to bring down drug prices—all because of Democrats’ Inflation Reduction Act. Not only did every single Republican vote against it, but—as Project 2025 makes clear—Republicans are still scheming to repeal the entire IRA under a Trump admin regardless of how that might hurt families.” [X, 8/15/24]
Majority Leader Chuck Schumer (D-NY): “Today’s announcement is a huge, long-sought-after breakthrough for American families. For decades, the American people wanted fair negotiations with Big Pharma, and because of the Inflation Reduction Act, they got it. Now the American people are seeing the results.” [X, 8/15/24]
Majority Whip Dick Durbin (D-IL): “The Biden-Harris Administration announced that 10 of the most costly and prescribed drugs are having their prices cut—some up to 79%—saving Americans billions on prescription drug prices. @POTUS & Senate Dems will continue to deliver through the Inflation Reduction Act.” [X, 8/15/24]
Chair of Policy & Communications Debbie Stabenow (D-MI): “BIG NEWS: @POTUS & @VP have negotiated lower costs for 10 prescription drugs! These are drugs seniors use every day for diabetes, blood clots, and cancers. About nine million people in the U.S. use one of these ten drugs & will see their costs lowered next year!” [X, 8/15/24]
Senate Finance Committee Chair Ron Wyden (D-OR): “Today, Medicare has used the bargaining power of tens of millions of American seniors to fight Big Pharma for lower drug prices,” Wyden said. “While Trump and his Republican allies in Congress want to leave Big Pharma in charge so seniors pay higher prices, Democrats have delivered lower costs, more consumer protections, and accountability of drug companies that raise prices with impunity. These new, lower prices for prescription drugs in Medicare means seniors save money at the pharmacy counter and marks the first step in a seismic shift in the relationship between Big Pharma, taxpayers, and seniors who need affordable prescription drugs.” [Senate Committee on Finance Press Release, 8/15/24]
Senate HELP Committee Chair Bernie Sanders (I-VT): “Let me congratulate the Biden-Harris Administration for taking on the greed of the pharmaceutical industry & slashing the list prices of some of the most expensive prescription drugs under Medicare by up to 79%. This action will bring significant financial relief to seniors.” [X, 8/15/24]
Senate Rules Committee Chair Amy Klobuchar (D-MN): “Exorbitant prices should never stand between Americans and the life-sustaining medications they need. That is why I worked to end the sweetheart deal that allowed Big Pharma to artificially raise prices at the expense of our seniors. This announcement will save patients and taxpayers billions of dollars and these savings will grow as Medicare negotiates the prices of even more drugs. Seniors won’t be the only ones to benefit. These prices will give employers and commercial health plans important information they need to secure savings for Americans with private insurance too. This is a major turning point in our fight to bring down costs.” [Press Release, 8/15/24]
Senator Bob Casey (D-PA): “For far too long, prescription drug costs have hung like a bag of rocks tied around the necks of millions of Americans, weighing them down every single day,” said Chairman Casey. “I fought to give Medicare the power to negotiate prices with drug companies to help ease the burden that so many older Americans are carrying. Today’s announcement is a huge relief for the people who rely on these often life-saving medications, and shows just how significant the savings will be as Medicare plans to engage in price negotiations on more and more drugs in the coming years.” [Press Release, 8/15/24]
Senator Jon Tester (D-MT): “Montanans shouldn’t have to struggle to fill their lifesaving prescription medications because Big Pharma is jacking up prices, and today’s announcement is a big win for Montanans across our state. That’s why I took the large pharmaceutical companies head-on to pass a commonsense law that will now officially lower the cost of 10 of the most common prescription drugs that Montanans rely on that treat heart disease, cancer, diabetes, blood clots, and more. I’ll continue working to lower costs and put more money back in the pockets of hardworking families.” [Press Release, 8/15/24]
Minority Whip Katherine Clark (D-MA-05): “A major win for seniors! This is what happens when our leaders prioritize people over profits.” [X, 8/15/24]
House Energy and Commerce Committee Ranking Member Frank Pallone (D-NJ-06): “This is a historic day. Democrats fought for over 20 years to empower Medicare to negotiate lower prescription drug prices for seniors. Today we have finally achieved that goal. As a result of these negotiations, Americans are expected to save $1.5 billion in the first year alone. And this is just the beginning. Now that Medicare has the authority to negotiate, it will continue to negotiate lower prices on more drugs each year going forward. It is a gamechanger that will save American seniors’ hard-earned money for years to come. While Republicans want to repeal this progress and allow Big Pharma to raise prices, Democrats are just getting started. We’re defending the progress we’ve made while continuing to fight to further lower prescription drug prices.” [Congressman Frank Pallone Jr. Press Release, 8/15/24]
House Ways and Means Committee Ranking Member Richard Neal (D-MA-01): “Tomorrow’s second anniversary of the Inflation Reduction Act is now that much more momentous with today’s announcement of the first slate of lower prescription drug prices negotiated by the Biden-Harris Administration. We are fighting back against Big Pharma’s ‘profits over people’ practice and putting an end to the heartbreaking decisions between medical care and life’s other responsibilities. Not only will seniors save $1.5 billion on out-of-pocket costs in the first year alone, but Medicare will also save $6 billion. It’s commonsense: strengthening our health care system while saving taxpayers money.” [House Ways and Means Committee Democrats, Press Release, 8/15/24]
House Education & Labor Committee Ranking Member Bobby Scott (D-VA-03) “Democrats beat Big Pharma when we enacted the Inflation Reduction Act. This law finally empowered Medicare to negotiate lower prescription drug prices. Today’s announcement from the Biden-Harris Administration will deliver massive savings for millions of seniors.” [X, 8/15/24]
Chair of the Congressional Asian Pacific American Caucus Representative Judy Chu (D-CA-28): “Exciting News! Thanks to the Inflation Reduction Act, the @WhiteHouse negotiated lower prices for 🔟 Medicare drugs. 💊 American taxpayers are expected to save $6 billion on Rx drugs 💲Medicare enrollees are expected to save $1.5 billion in out-of-pocket Rx costs in 2026 alone” [X, 8/15/24]
Advocates
AARP’s Executive Vice President and Chief Advocacy and Engagement Officer Nancy LeaMond: “Today’s announcement marks a significant step forward in our long-standing efforts to lower prescription drug prices. AARP members from across the political spectrum overwhelmingly called lowering prescription drug costs a top concern – and this first round of Medicare-negotiated prices will bring financial relief to millions of older Americans. As the voice for the 100 million Americans ages 50-plus, we will continue working to ensure this law is fully implemented and benefits older Americans for decades to come.” [AARP, 8/15/24]
Accountable.US’ Executive Director Tony Carrk: “This is a transformative victory for millions of seniors and other patients who rely on Medicare for affordable access to life-saving medications. Big Pharma CEOs and their army of lobbyists spared no expense to defend a system rigged in their favor, prioritizing profits and price gouging over people’s health. The Biden-Harris administration has made the well-being of millions of Americans the priority, taking a decisive step towards lowering c2osts for millions.” [Press Release, 8/15/24]
Building Back Together’s Deputy Director of Strategic Initiatives Eileen Garcia: “Today marks a key moment in America’s history. Thanks to the Inflation Reduction Act — passed as a result of Vice President Harris’ historic tie-breaking vote in the Senate and signed by President Biden — Medicare has resolved its first-ever negotiations with Big Pharma, lowering the cost of ten of the most commonly used prescriptions in the country. … From day one of this administration, President Biden and Vice President Harris have stood firm in the face of big corporations to bring down prices and ease the financial burdens plaguing working people. The fact is, medications don’t work if people can’t afford to take them; now, more people will be able to access the critical care they need to live healthier lives, and that is a fact worth celebrating.” [Press Release, 8/15/24]
Center for American Progress’ Vice President of Health Policy Andrea Ducas: “Today’s announcement marks a historic moment for the Medicare program. Thanks to the Biden-Harris administration, seniors will benefit from price cuts for lifesaving drugs, which will put cash back in their pockets. For decades, Big Pharma has raked in record profits, with America’s seniors paying the price. Essential drugs to treat cancer and blood clots and to manage chronic conditions should not be priced out of reach to pad pharmaceutical companies’ bottom lines. In addition to the IRA’s $2,000 Medicare Part D out-of-pocket cost cap, inflation rebates, and $35 monthly cost cap on insulin, today’s negotiated prices are another example of how the IRA and the Biden-Harris administration are delivering much-needed relief to millions of Medicare beneficiaries.” [Press Release, 8/15/24]
Health Care For America Now’s Executive Director Margarida Jorge: “As the Inflation Reduction Act turns two this week, today’s news about lowered prices through Medicare negotiations gives patients, providers and taxpayers alike something big to celebrate. … And this is just the beginning. More drugs will be selected each year as part of Medicare’s drug price negotiation program which will save patients and taxpayers even more money over the coming decade and make medicines more accessible for seniors and people with disabilities.” [Press Release, 8/15/24]
Patients For Affordable Drugs’ Executive Director Merith Basey: “For the first time in its 59-year history, Medicare has ushered in a new era of affordability for patients across the country by successfully negotiating lower prices on 10 of the most expensive and widely-used drugs. Medicare Negotiation alters the trajectory of drug pricing in the U.S. and begins to break the monopoly power of big drug corporations to dictate prices of brand-name drugs to people in this country. It marks a critical shift in the system to make it work for the people it is supposed to serve – patients – rather than those who profit from it. The lower negotiated prices symbolize new hope for patients on these drugs who have been forced to make impossible choices between their health, well-being, and financial stability.” [Press Release, 8/15/24]
Public Citizen’s Access to Medicines Director Peter Maybarduk: “This is a major achievement. At last and over Big Pharma’s pernicious, hand-wringing opposition, Medicare has negotiated drug prices, promising long-overdue savings for American taxpayers.” [Press Release, 8/15/24]
Small Business for America’s Future Senior Advisor Rhett Buttle: “The Inflation Reduction Act gave Medicare the authority to negotiate lower drug prices, which marked another important step toward increased affordability that will have far-reaching impacts on the entire healthcare system. Today’s announcement of the negotiated prices for 10 key medications, set to take effect in 2026, is a clear demonstration of this policy in action. … By addressing high healthcare costs, we’re strengthening small businesses and the overall health of our national economy. I encourage lawmakers to prioritize more policies like the Inflation Reduction Act to sustain small business growth.” [Press Release, 8/15/24]