President Joe Biden announced Thursday he is looking for Congress’ help in reducing the price of prescription drugs.
According to a White House fact sheet, Americans pay two to three times as much as people in other countries for prescription drugs, and one in four Americans who take prescription drugs struggle to afford their medications. “President Biden believes that health care is a right, not a privilege,” the fact sheet said. “No American should have to face difficult choices between paying for their prescription medications or other essential needs.”
The President’s plans include:
- Allowing Medicare to negotiate drug prices
- Making other reforms to lower prices
- Lowering the cost of prescription drugs
According to the fact sheet, prescription drugs are unique in that it is against the law for Medicare to work to get the best prices for American seniors.
“This needs to change,” the fact sheet said. “Medicare negotiators would be provided a framework for what constitutes a fair price for each drug, and there should be powerful incentives to make sure drug companies agree to a reasonable price.”
President Biden also wants to establish a cap on the amount Medicare beneficiaries have to pay out-of-pocket for drugs each year.
The White House is also calling on Congress to force drug companies to pay a penalty if they raise their prices faster than inflation. “For years, the price of many prescription drugs has dramatically outpaced inflation,” Biden said. “These prices have put the squeeze on too many families and stripped them of their dignity.”
In the meantime, the federal government will be working with states and Tribes to import safe, lower-cost prescription drugs from Canada and accelerating the development and uptake of generic and biosimilar drugs that give patients the same exact clinical benefit but at a fraction of the price.
This isn’t the first time the Biden Administration has addressed prescription drug prices. They were a part of an executive order Biden issued in July. He called on each agency to improve competition, increase wages, and reduce prices.
Among the promises the White House is making if the preceding steps are taken:
- Lower premiums and copays for millions of Americans
- Insulin prices could fall by hundreds of dollars on average
- The price for some arthritis medicines might fall by more than $2,000 every month
- For some of the most expensive drugs, prices would fall by tens of thousands of dollars per year
- A person taking an expensive cancer drug could see their out of pocket costs fall by at least $9,000 a year
- On average, Medicare beneficiaries would save about $200
- Costs for employer health insurance would fall, reducing premiums by tens of billions of dollars or more
“This isn’t a partisan issue. Alzheimer’s, diabetes, cancer, they don’t care if you’re Democrat or Republican,” Biden said. “This is about whether or not you and your loved ones can afford prescription drugs you need. I look forward to the Congress getting this done.”