Frank Pallone Jr.

09/16/2024 | Press release | Distributed by Public on 09/16/2024 10:32

Pallone Highlights Medicare Drug Price Negotiations, Highlights Legislation to Expand Savings to Privately Insured Americans

Piscataway, NJ- Congressman Frank Pallone, Jr. (NJ-06), ranking member of the House Energy and Commerce Committee, held a press conference at the Piscataway Senior Citizen Center to discuss new Medicare drug price negotiations-a key provision of the Inflation Reduction Act. Pallone, who played a crucial role in crafting the legislation, emphasized the significant savings these negotiations will bring to New Jersey's seniors and outlined his Lowering Drug Costs for American Families Act, which aims to extend these benefits to individuals with private health insurance."This is a significant moment in our fight to lower prescription drug costs,"said Pallone. "I worked closely with President Biden to ensure Medicare drug price negotiations were included in the Inflation Reduction Act, and now, millions of seniors in New Jersey and across the country will finally see the benefits. But we can't stop here-my legislation will ensure that everyone, no matter their insurance, can benefit from lower drug prices."

The negotiations target some of the most expensive and widely used medications, including treatments for diabetes, heart disease, arthritis, and blood cancers. These negotiations are projected to reduce drug costs nationally by $1.5 billion in the first year, with savings for Medicare beneficiaries expected to take effect in 2026. Additionally, the law will cap out-of-pocket costs at $2,000 starting next year.

"We've already seen the power of this kind of reform in action," Pallone continued. "When Democrats capped insulin costs at $35 for Medicare beneficiaries, major drug manufacturers like Eli Lilly, Novo Nordisk, and Sanofi responded by offering the same price to many more Americans, including those with commercial insurance or no insurance at all. This proves that applying the right pressure can result in real, tangible changes that help millions of Americans."

Pallone was instrumental in ensuring Medicare's ability to negotiate drug prices was included in the Inflation Reduction Act. In 2022, he stood alongside President Biden at the White House as the bill was signed into law. Pallone has been a leading advocate for giving Medicare the power to negotiate drug prices, a reform he has championed for more than two decades. The law now allows Medicare to negotiate directly with pharmaceutical companies, marking a significant shift after years of opposition.

Pallone joined healthcare advocates, local officials, and seniors directly impacted by high prescription costs. Participants discussed the immediate effects of the negotiations and Pallone's next legislative effort-the Lowering Drug Costs for American Families Act-which seeks to extend these benefits to Americans with private health insurance.

"We applaud Congressman Pallone for championing The Lowering Drug Costs for American Families Act which expands on the groundbreaking reforms made possible by the Inflation Reduction Act," said Laura Waddell, Health Care Program Director for New Jersey Citizen Action. "This Act makes health care more affordable for millions of additional families by extending the Medicare negotiated prices, increasing the number of negotiated drugs, and applying inflationary caps to all Americans who are covered by private health plans. Medicare reform has helped millions of seniors. We urge Congress to join Congressman Pallone in voting for this legislation, which would extend these benefits to all Americans.""America is healthy when Americans are healthy,"Piscataway Mayor Brian C. Wahler said. "For many years, seniors had to dig deep to pay for their prescription drugs, but now thanks to Frank Pallone, their golden years are more secure. I am thrilled and grateful that he continues to work hard to make more medicine more affordable not only for seniors but also working families.""Healthcare oversight and data transparency result in financial relief for working families, including the hard-working members of 32BJ SEIU. We support the Lowering Drug Costs for American Families Act, which will give employers and health benefit administrators like those at the 32BJ Health Fund additional tools to lower prescription drug costs,"said Ana Maria Hill, New Jersey State Director of 32BJ SEIU."The American College of Physicians strongly believes in allowing Medicare to negotiate the price of prescription drugs directly with drug manufacturers. Any treatment can only be as effective as our patients' ability to access it. Expanding the number of high-cost medications that Medicare selects for negotiation would ensure that more American seniors, particularly those managing chronic conditions, will have access to the medications they need without the overwhelming financial burden many across our state and country face every day. We commend Rep. Frank Pallone for his leadership and commitment to lowering the costs of prescription drugs for American seniors,"Dr. Elizabeth Cerceo, Chair of the Health and Public Policy Committee for the American College of Physicians' New Jersey Chapter.

In addition to expanding drug price negotiations to include those with private insurance, Pallone's bill would increase the number of drugs subject to negotiation from 20 to 50 per year. It would also extend inflation penalties, currently applied to Medicare, to drugs covered by private insurance, ensuring drug manufacturers cannot raise prices faster than inflation.

In an op-ed published in The USA TODAY Network last month, Pallone outlined the broader implications of Medicare drug negotiations and the need to expand these benefits beyond seniors. His article, "Slashing Drug Prices for All Americans", elaborated on his legislative efforts to make prescription medications more affordable for everyone, regardless of insurance type.