Statement: Senate votes for groundbreaking provisions to save billions in prescription drug costs

Media Contacts
Consumer group highlights significant wins that will address rising prices of medications
For Immediate Release

WASHINGTON – The Inflation Reduction Act just passed by the U.S. Senate provides powerful tools for the government to address high drug prices. Federal legislators identified ways to address drug costs that will save close to $240 billion over 10 years and also relieve the burden of the high cost of medications for many Americans. Next, the U.S. House of Representatives must pass the bill for it to become law.

U.S. PIRG applauds two important provisions: Medicare negotiation of prescription prices and setting a cap on annual drug price increases for the Medicare program. Two-thirds of American adults take prescription medicines, and many are burdened by the high prices. On average, Americans pay two to three times as much as people in other countries for the same essential medications.

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

“After intense pushback from the drug lobby, the Senate has finally claimed the power of the federal government to negotiate fair and reasonable drug prices for the 62 million Americans on Medicare. If the House also passes the Inflation Reduction Act, our government will have the ability to negotiate for lower prices, just like any insurance company could.

“People have struggled to pay for their medications as prices skyrocket, with price hikes sometimes occurring multiple times in one year with no additional therapeutic benefits. Setting a limit to the amount  Medicare drug prices can rise in one year would protect many Americans from egregious costs and help save billions of dollars for both patients and our federal Medicare program.”