CONGRESSMAN PAT RYAN ANNOUNCES LOWER PRICES FOR DRUGS NEGOTIATED BY MEDICARE

Congressman Pat Ryan Announces Lower Prices for Drugs Negotiated by Medicare 

The Inflation Reduction Act (IRA) included a provision allowing Medicare to negotiate the price of prescription drugs with pharmaceutical companies; Ryan announced that negotiations will lead to significantly lower prices for 10 of the most commonly used drugs, saving seniors $1.5 billion

Far-right Republicans have repeatedly pushed to repeal the IRA provision; Ryan remains committed to protecting and strengthening this vital legislation 

KINGSTON, NY –  Today, Congressman Pat Ryan announced that seniors on Medicare can expect big savings on prescription drug prices after Medicare negotiated directly with pharmaceutical companies to lower the price of ten of the most commonly prescribed medications. The Inflation Reduction Act included a provision allowing Medicare to directly negotiate with pharmaceutical companies to lower drug prices for seniors for the first time. Earlier this year, the Republican Study Committee (RSC), which consists of 80% of House Republicans, proposed eliminating this provision that is set to save $6 billion for taxpayers and $1.5 billion for seniors on Medicare. Ryan has long fought to lower healthcare costs for Hudson Valley families, including introducing his Stopping Pharma’s Ripoffs and Drug Savings for All Act to make lower-cost, generic prescription drugs easier to produce and more accessible for patients.

“Hudson Valley seniors have earned their Medicare coverage; they shouldn’t have to break the bank just to pay for the medications they rely on,” said Congressman Pat Ryan. “These negotiated prices will deliver the much-needed, direct relief that our seniors deserve, and the savings will bring prices down for all of us. Allowing Medicare to negotiate against big pharma’s price gouging is common sense, saving seniors $1.5 billion, and fiscally responsible, saving taxpayers $6 billion. Yet, far-right Republicans are trying to gut this measure. It’s cruel, cynical, and you better believe I’ll be fighting back to protect Hudson Valley seniors.”

The first ten medications were chosen as some of the most commonly used and most expensive for seniors on Medicare. Once Medicare begins paying the lower negotiated prices, the actual amount beneficiaries pay out of pocket will be even lower as cost sharing goes down. In addition, lower Medicare rates often allow private health plans to bargain for better prices, meaning the negotiations could yield lower prescription drug costs for all Americans. 

The announcement of the negotiated prices for Medicare patients has the potential to result in cost savings for non-Medicare patients as well. When the Inflation Reduction Act capped the price of insulin at $35 per month, many private pharmaceutical companies, notably Eli Lilly, also announced they would slash the costs of their insulin products to $35 a month, extending these drug savings to patients not on Medicare.

The new, negotiated prices will take effect in 2026 and include the following prescription drugs:

Medication and Use                                              List Price                 New Negotiated Price

Eliquis for blood clots                                          $521                         $231

 

Jardiance for diabetes, 

heart disease, and kidney disease                         $573                         $197

 

Xarelto for blood clots and heart disease             $517                         $197

 

Januvia for diabetes                                              $527                        $113

 

Farxiga for diabetes, heart failure, and                $556                         $178.50

kidney disease

 

Entresto for heart failure                                      $628                         $295

 

Enbrel for arthritis and psoriasis                          $7,106                      $2,355

 

Imbruvica for blood cancers                                $14,934                    $9,319

 

Stelara for psoriasis, arthritis,                              $13,836                    $4,695

Crohn’s Disease and ulcerative colitis

 

Fiasp, including Flextouch, Penfill,                     $495                          $119

Novolog, Novolog Flexpen, and  

Novolog Penfill for diabetes                                                     

 

In addition to these first 10 drugs, Medicare will negotiate the prices of 15 additional drugs in 2025, and 20 additional drugs for each following year. In 2025, the Inflation Reduction Act’s provision that caps the out-of-pocket costs for Medicare beneficiaries at $2,000 will go into effect, saving seniors an average of $400 per year. 

Congressman Ryan has prioritized protecting Social Security and Medicare in Congress, repeatedly voting against House Republicans’ attempts to cut the benefits, including by blocking Republicans’ proposed 20% cut to Social Security in his first year in Congress. This spring, former President Donald Trump said that there is “a lot you can do in terms of entitlements, in terms of cutting.”

Earlier this year, the RSC, consisting of 80% of House Republicans proposed a budget that would cut over $1.5 trillion from Social Security and increase the retirement age to 69. The RSC’s budget includes cuts to  Medicare, raising premiums, and encourages privatization. The Republican Study Committee plan also proposes stripping away major cost-saving measures for Medicare patients that President Biden’s Inflation Reduction Act implemented, including the $35/month cap on insulin prices, and the soon-to-be rolled out ability for Medicare to negotiate prescription drug costs and a $2,000/year out-of-pocket cap.

When now-Speaker Mike Johnson led the Republican Study Committee in 2020, it proposed cutting Medicare by $1.9 trillion and Social Security by $756 billion over the course of 10 years and would include provisions to privatize Medicare. Republican Senator Rick Scott has proposed a plan to sunset Social Security and Medicare, threatening the very existence of both programs.

Ryan recently introduced the Protecting Social Security Act to prevent cuts to the vital program and to ensure that seniors and those who rely on the program receive their earned benefits. Ryan also recently introduced the Improving Access to Emergency Medical Services for Seniors Act so that seniors on Medicare can be treated on-site and at home by emergency first responders and cosponsors the Strengthening Medicare for Patients and Providers Act, the Social Security Fairness Act, and the Drug Price Transparency in Medicaid Act among other legislation to expand access to Social Security and Medicare. 

Ryan also introduced the Stopping Pharmas Ripoffs and Drug Savings for All Act to prevent pharmaceutical companies from gaming the U.S. patent system and to make more affordable, generic prescription drugs easier to produce and more accessible to all patients. 

Congressman Ryan has also prioritized making benefits and assistance accessible for Hudson Valley seniors, hosting multiple resource fair events for seniors. His C.A.R.E.S. Van routinely visits senior centers and Dutchess County Senior Picnics to bring assistance directly to seniors where they’re at. Ryan recently launched his C.A.R.E.S. Van Social Security and Medicare Tour, the schedule for the remaining events are as follows: 

WEDNESDAY, AUGUST 28

11:00AM to 2:00PM

Newburgh Armory Unity Center

321 S William Street

Newburgh, NY 12550

 

THURSDAY, SEPTEMBER 5

11:00AM to 2:00PM

Red Hook Fire Company

42 Firehouse Lane,

Red Hook, NY 12571

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