In NYC, Gillibrand Touts Lower Costs For 10 Prescription Drugs And Announces Additional Legislation To Cap Prescription Drug Costs At $2k Annually

In NYC, Gillibrand Touts Lower Costs For 10 Prescription Drugs And Announces Additional Legislation To Cap Prescription Drug Costs At $2k Annually

Sep 16, 2024

Today, at a press conference in NYC, U.S. Senator Kirsten Gillibrand announced historic Medicare savings and lower costs for 10 commonly used prescription drugs. These drugs are some of the most expensive and most frequently prescribed in the Medicare program and are used to treat conditions such as heart disease, diabetes, and cancer. The new prices will go into effect for people with Medicare Part D prescription drug coverage beginning January 1, 2026. Gillibrand also announced the Capping Prescription Costs Act, which would extend the cap on annual out-of-pocket prescription drug costs to people with private health insurance, with a cap of $2,000 for individuals and $4,000 for families.

"No one should have to risk their health by skipping refills or rationing life-saving medication because they can't afford the cost of their prescriptions. In 2022, the Biden-Harris administration delivered historic savings by passing the Inflation Reduction Act, which allowed Medicare to negotiate drug prices and capped the price of insulin at $35 a month for seniors. The $6 billion in predicted savings for the Medicare program following these drug price negotiations is proof that the Inflation Reduction Act is working for the American people," said Senator Gillibrand. "Now, I'm fighting to get prices down on all drugs for all Americans. The Capping Prescription Costs Act imposes caps on out-of-pocket prescription drug costs for people with private insurance: a maximum of $2,000 a year for an individual and $4,000 a year for a family. Democrats are fighting to expand Medicare benefits and reduce prescription drug prices because access to high-quality, affordable health care is a human right, not a privilege."

"Every New Yorker deserves access to affordable life-saving medications without the fear of financial ruin. Senator Gillibrand's legislation would be a critical step to ensure no one has to choose between their health and their financial well-being. By capping out-of-pocket drug costs for individuals and families, we can bring real relief to those struggling with chronic conditions. We must recognize that healthcare is a human right," said New York State Senator Gustavo Rivera.

"The Inflation Reduction Act took vital steps to lower beneficiary and Medicare costs, including by establishing a $2,000 cap on annual out-of-pocket prescription drug spending. As a result, for the first time in Medicare's history, all Part D enrollees will have certainty about their cost obligations and protection against limitless expenses. The Medicare Rights Center is pleased to support Senator Gillibrand's Capping Prescription Costs Act, which would create similar safeguards for people with other types of coverage, ensuring they too can plan more and worry less. We applaud Senator Gillibrand and her co-sponsors for championing this legislation and look forward to working together to ensure all Americans can get the care they need, when they need it," saidFred Riccardi, President, Medicare Rights Center.

"With this policy New York's elders, who largely live on fixed incomes, will be able to concentrate on their health rather than the anxiety of how they can or cannot afford their prescription drugs. On a larger scale, this policy is timely as New Yorkers 65 years of age and older, as a cohort, are approaching 20 percent of the population. Implementing this policy addresses the infrastructural shift not only in New York State, but in the entire country," said María Alvarez, Executive Director, New York StateWide Senior Action Council.

"As Chair of the NYC Council Health Committee, I applaud Senator Gillibrand's leadership in lowering prescription drug costs and her commitment to making life-saving medications more affordable," said Council Member Lynn Schulman. "This new legislation is a critical step toward ensuring that no New Yorker has to choose between their health and financial stability."

The Capping Prescription Costs Act builds on transformational drug pricing reforms included in the Inflation Reduction Act of 2022, which capped the price of insulin at $35 a month and out-of-pocket drug costs at $2,000 a year for Medicare Part D beneficiaries. The bill is cosponsored by Senators Bob Casey (D-PA), Raphael Warnock (D-GA), Amy Klobuchar (D-MN), John Fetterman (D-PA), Richard Blumenthal (D-CT), Chris Van Hollen (D-MD), Martin Heinrich (D-NM), Tammy Baldwin (D-WI), Peter Welch (D-VT), and Patty Murray (D-WA). Representative Kathy Manning (D-NC) leads companion legislation in the House.

For more information on the Biden-Harris administration agreements for new, lower prices for the first 10 drugs selected for Medicare price negotiations, please click here. Gillibrand was joined in NYC by New York State Senator Gustavo Rivera, President of the Medicare Rights Center Frederic Riccardi, and Executive Director of New York StateWide Senior Action Council María Alvarez.