Joe Biden Advocates for Expansion of New Initiatives to Reduce Drug Prices

12

TL/DR –

President Joe Biden plans to build upon his initiatives to reduce prescription drug prices in the US, treating them as some of his main achievements. He proposes to strengthen the federal government’s power to negotiate drug prices in Medicare and expand the $2,000 limit on out-of-pocket drug expenses to all insured Americans, not just those in Medicare. These proposals build upon provisions in the Inflation Reduction Act, which passed two years ago, aiming to reduce drug prices, especially for senior citizens, by giving the federal government the power to negotiate drug prices directly with manufacturers.


President Biden to Propose More Actions to Lower Prescription Drug Prices

President Joe Biden views his administration’s efforts to reduce the price of prescription drugs as some of his paramount achievements so far. However, he intends to do more.

During his State of the Union address, Biden plans to propose intensifying the federal government’s power to negotiate down Medicare drug prices, say senior White House officials. He also intends to broaden a $2,000 cap on out-of-pocket drug expenses to include all insured Americans, not just those on Medicare.

These proposed changes build upon federal health care action implemented two years ago with the Inflation Reduction Act, a comprehensive climate and health care bill enacted by Democrats. This act contained several provisions to reduce the price of prescription drugs, particularly for senior citizens.

Despite the challenges of getting the proposal through Congress, Biden plans to expand the drug price negotiation program to include at least 50 drugs each year, aiming to match other economically advanced nations where residents pay less for name-brand prescription drugs.

The Inflation Reduction Act also introduced the first-ever limit on out-of-pocket drug expenses in Medicare, relieving seniors from paying many thousands of dollars per year for their medications. Biden will propose to extend this limit to private insurance as well.

Success of these proposals depends on Biden’s re-election and Democrats regaining control of both Congress chambers. This is due to Republicans’ typical resistance to increasing the federal government’s control over drug prices, citing potential innovation stifling and shortages.

Despite the controversies, these proposed drug pricing reforms are highly popular, with polls showing widespread support from voters, including Republicans. However, few Americans are aware of these changes, mostly due to their gradual implementation.

In his address, Biden aims to remind Americans of his administration’s efforts to lower drug prices and his future aspirations if re-elected. “President Biden is doubling down on his efforts to lower drug prices, keep premium costs low, expand Medicaid, and put the health and well-being of families first,” said Leslie Dach, chair of Protect Our Care.

Read More US Economic News

Comments are closed.