AARP’s Yearslong Fight for Lower Prescription Drug Prices Included in Inflation Reduction Act

Seniors should never have to make a choice between paying for needed medication and other necessities like food or rent, and tens of millions of adults in Medicare drug plans will soon have peace of mind knowing their out-of-pocket expenses are limited every year.

Recently, the Inflation Reduction Act of 2022, which includes top AARP priorities to lower the cost of prescription drugs, became the law of the land. After years of fights and negotiating in Congress, AARP took a historic step for real relief for millions of older Americans. This reform is a major victory for families across the country who struggle to afford their prescriptions or health insurance.

The Inflation Reduction Act of 2022, which recently became law:

• Finally allows Medicare to negotiate the price of drugs
• Caps annual out-of-pocket prescription drugs costs in Medicare Part D at $2,000
• Holds drug companies accountable when they increase drug prices faster than the rate of inflation in Medicare
• Caps co-pays for insulin to no more than $35 per month in Part D
• Expands access to low-income subsidies by expanding the income threshold for eligibility from 135 percent to 150 percent of the federal poverty level

For two decades, Medicare has been legally prohibited from negotiating for lower drug prices and the pharmaceutical industry has been fighting to uphold the prohibition to protect their profits. According to a federal report from the Office of Health Policy at the U.S. Department of Health and Human Services (HHS), “More than 5 million Medicare beneficiaries struggle to afford prescription medication. Among adults 65 and older, Black and Latinx beneficiaries are most likely to experience affordability problems.” 

In 2021, AARP surveyed registered voters ages 50 and older and found that nearly one-fifth of the people surveyed have not filled a doctor’s prescription in the past two years, with the most common reason being that they could not pay for it. Thus, new policies and drug prescription price reform continue to be imperative for improving equitable access to healthcare.

When AARP received a call on the morning of October 28, 2021 and heard the prescription drug reforms to lower prices that AARP had been fighting for were not included in the legislation, the entire organization stepped up and took action.

Congressional offices were flooded with phone calls from AARP members. AARP members and activists also sent out over 400,000 communications, including emails and social media posts, expressing their disapproval of excluding Medicare prescription reform from the budget package. In a matter of days, President Biden issued a statement that showed that the Medicare negotiation of prescription drugs and other elements of AARP’s priorities were back in the bill.

Even with the passage of the Inflation Reduction Act of 2022, the fight still is not over. AARP will continue to be your wise friend and fierce defender, fighting to crack down on drug prices at the federal and state level.

“Many people said this couldn’t be done, but AARP isn’t afraid of a hard fight. We kept up the pressure, and now, for the first time, Medicare will be able to negotiate with drug companies for lower prices, saving seniors money on their medications,” said Jo Ann Jenkins, Chief Executive Officer of AARP.