August 15,2024

Wyden Cheers Lower Drug Prices for Seniors Through Medicare Negotiation

Conclusion of First Year of Medicare Drug Price Negotiation Will Result in Significant Savings for Seniors and Taxpayers

Washington, D.C. – Senate Finance Committee Chair Ron Wyden, D-Ore., today celebrated the announcement by the Biden-Harris administration of lower drug prices for ten of the most expensive prescription drugs in Medicare, which were subject to negotiations between the federal government and the drug companies that manufacture them.

“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.” 

Last year Medicare selected ten of the highest-cost drugs for negotiations. Those drugs were: Eliquis, Jardiance, Xarelto, Januvia, Farxiga, Entresto, Enbrel, Imbruvica, Stelara and NovoLog. Next, 15 drugs will be selected for negotiations. In addition to Medicare negotiation, the Inflation Reduction Act (IRA) created several steps to lower prescription drug costs for seniors and taxpayers, including:

  • A $2,000 out-of-pocket cap on prescription drug costs in Medicare Part D, beginning January 2025.
  • A $35 monthly cap on insulin co-pays in Medicare.
  • A price-gouging penalty that saves money for seniors and taxpayers when drug companies raise prices faster than the rate of inflation.
  • No-cost vaccines for seniors in Medicare.

For more information on the new lower prices following Medicare negotiations, see here.

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