ICYMI Read my op-ed: As Medicare negotiates lower prices, we are slashing drug costs for New Jersey residents

As Medicare negotiates lower prices, we are slashing drug costs for New Jersey residents

Frank Pallone Jr.

Special to the USA TODAY Network

For more than two decades, Democrats have fought to bring fairness to a health care system rigged against the American people in favor of drug companies. I've been on the front lines, working tirelessly to give Medicare the power to negotiate lower prescription drug prices - a common-sense solution that Republicans have consistently blocked. While drug companies raked in billions, families struggled to afford their medications.

But this year, thanks to the Inflation Reduction Act, we are finally turning the tide. As one of the architects of the Inflation Reduction Act, I made sure Medicare drug negotiations were central to this historic legislation. Being by President Biden's side as he signed it into law was a transformative moment. For the first time in history, Medicare can negotiate drug prices, benefiting more than 1.3 million New Jersey enrollees and saving an estimated $101 million in just the first year. Nationally, this will lower prices on some of the costliest Medicare drugs, saving seniors $1.5 billion in the first year alone.

We've already seen the power of lowering drug prices in action. After Democrats capped insulin costs at $35 for Medicare beneficiaries, major drug manufacturers like Eli Lilly, Novo Nordisk and Sanofi responded by offering the same low prices to many Americans, including those with commercial insurance or even no insurance at all. This proves that when we apply the right pressure, we can force real, tangible changes that improve lives. The recent Medicare drug price negotiations will continue this trend, saving recipients billions on out-of-pocket costs for years to come on essential medications treating conditions like diabetes, heart disease, arthritis and blood cancers, with price reductions ranging from 79% on Januvia to 38% on Imbruvica.

The work doesn't stop here. My bill, the Lowering Drug Costs for American Families Act, aims to bring these same benefits to those with private insurance. It would expand drug price negotiations to include all Americans with private health insurance and increase the number of drugs subject to negotiation each year from 20 to 50, broadening the program's reach and delivering even more savings.

Additionally, my bill would ensure those with private health insurance coverage are protected from unfair drug price increases on existing drugs by extending the inflation penalties that currently apply to the Medicare program to those with commercial insurance as well. This policy ensures drug manufacturers cannot increase their prices faster than the rate of inflation, so consumers aren't gouged at the pharmacy counter for the medications they need.

https://www.northjersey.com/story/opinion/2024/08/22/slashing-drug-prices-for-all-americans/74861321007/