Bill Allows Medicare to Negotiate Lower Drug Prices and Caps Out-of-Pocket Spending on Medications for Seniors in Medicare Plans
August 7– Earlier today the Senate voted to pass the Inflation Reduction Act of 2022, a bill that includes several key provisions to lower the prices of prescription drugs. AARP Oregon thanks Senator Ron Wyden and Senator Jeff Merkley for supporting this critical legislation and moving one step closer to real relief for seniors.
The Inflation Reduction Act includes key AARP priorities that will go a long way to lower drug prices and out-of-pocket costs. AARP fought for provisions in the bill that will:
- Finally allow Medicare to negotiate the price of drugs;
- Cap annual out-of-pocket prescription drug costs in Medicare Part D at $2,000;
- Hold drug companies accountable when they increase drug prices faster than the rate of inflation, and;
- Cap co-pays for insulin to no more than $35 per month in Part D.
Jo Ann Jenkins, AARP Chief Executive Officer, issued a statement reacting to the Senate vote.
“Since AARP’s founding we have fought for older adults to have access to affordable health care – including prescription drugs. And we have been working for nearly two decades to allow Medicare to negotiate the price it pays for medications. Thanks to today’s historic vote in the Senate, millions of Americans 50+ are one step closer to real relief from out-of-control prescription drug prices. This bill will save Medicare hundreds of billions of dollars and give seniors peace of mind knowing there is an annual limit on what they must pay out-of-pocket for medications. Lowering prescription drug prices is a top priority for Americans, with more than 80% of people across political parties supporting the measure. We thank all the senators who voted today to lower drug prices.
“We are also pleased that the bill will keep health insurance affordable for millions of Americans who purchase their coverage in the marketplace, especially consumers aged 50-64 – more than one million of whom have gained more affordable options.
“We urge the House to move quickly and enact this momentous reform. AARP fought hard for this victory, and we will keep fighting to get Americans relief from the high price of prescription drugs.”