STATEMENT: Medicare drug price negotiation will result in dramatic savings for patients

WASHINGTON – A day ahead of the second anniversary of the Inflation Reduction Act, President Joe Biden and Vice President Kamala Harris announced Thursday new negotiated prices for 10 costly and widely used prescription medications. The administration predicts that these prices, effective in 2026, will save patients and the Medicare program about $6 billion per year. They should help about 8.8 million older Americans who take certain medications to treat diabetes, psoriasis, heart failure, certain blood cancers, and other conditions. 

PIRG has been pushing for years for solutions to the high prices of health care — including winning the right to negotiate better prices for prescription drugs. 

In response, Patricia Kelmar, U.S. PIRG’s health care campaigns senior director, issued the following statement: 

“For years, the powerful drug lobby had prevented any negotiation for drug prices by the largest purchaser of medications, our Medicare program. But Congress and the president heard the pleas of patients saying that they can’t just pay whatever the industry wants to charge — drug prices are out of control.

“Now, we can celebrate the first set of new lower prices for common pricey medications that patients rely on to live productive, healthy lives. And this is just the beginning. Drug price negotiation will continue every year for even more important prescription drugs. With these negotiations and this new law, we are honoring patients and being good stewards of our federal tax dollars that support Medicare.”