Congressman Cleaver Applauds Biden-Harris Administration’s Announcement of Lower Prescription Drug Prices for America’s Seniors

"Two years ago, Democrats in Congress came together to take on Big Pharma and lower prescription drug costs for seniors across the country-and today America's seniors won," said Congressman Cleaver. "Because of the Biden-Harris Administration's Inflation Reduction Act, millions of Americans with diabetes have had their insulin costs capped at $35 per month, seniors are seeing lower out-of-pocket costs on their medications, and taxpayers are saving billions as Medicare is now allowed to negotiate lower prices for life-saving prescription drugs. While my Republicans colleagues have vowed to repeal these savings for the American people, even as families continue to feel pressure on their pocketbooks, I won't stop fighting to end Big Pharma's price gouging, expand these savings, and lower healthcare costs for families in Missouri and beyond."

According to the Department of Health and Human Services, roughly nine million people with Medicare use at least one of the ten drugs selected for negotiation, and Americans with Medicare prescription drug coverage are expected to see approximately $1.5 billion in savings to their personal out-of-pocket costs in 2026 alone. Had these new prices been in effect last year, it is estimated Medicare would have saved $6 billion on the ten selected drugs.

Moving forward, the Center for Medicare and Medicaid Services (CMS) will select up to 15 more drugs covered under Part D for negotiation for 2027 by February 1, 2025. CMS will then select up to 15 more drugs covered by Part B or Part D for 2028, and up to 20 more Part B or Part D drugs for each year after that, as required by the Inflation Reduction Act.

In addition to these newly negotiated prices, seniors and people with disabilities across Missouri are already experiencing lower drug costs thanks to provisions in the Inflation Reduction Act, including:

• Capping insulin costs at $35 per monthfor people with Medicare, which is estimated to save impacted Missourians $523 per year.
• Making recommended vaccines available at no costfor people with Medicare Part D, which impacts more than one million Missourians.
• Requiring drug companies to pay a rebateto Medicare if they raise prices faster than the rate of inflation.
• Expanding the Extra Help Programto provide more benefits for qualifying enrollees with limited income and assets.
• Capping out-of-pocket drug costs for some enrollees at $3,500 in 2024, and in 2025, lowering the cap to $2,000for out-of-pocket costs, which is expected to save roughly 276,000 Medicare Part D enrollees in Missouri approximately $77 million.

"In the wealthiest nation in the history of the world, no one should have to choose between putting food on the table and affording the medications they need to survive, which is why I was proud to support the Biden-Harris Administration's Inflation Reduction Act," said Congressman Cleaver. "While this is a historic step in the fight to combat Big Pharma's price gouging, I know there is still much work to do to build on this progress, and I'm committed to expanding these savings for hardworking families across Missouri's Fifth Congressional District."

A Fact Sheet on how the Biden-Harris Administration's Inflation Reduction Act is lowering prescription drug costs for Missourians is available here.

Emanuel Cleaver, II is the U.S. Representative for Missouri's Fifth Congressional District, which includes Kansas City, Independence, Lee's Summit, Raytown, Grandview, Sugar Creek, Greenwood, Blue Springs, North Kansas City, Gladstone, and Claycomo. He is a member of the exclusive House Financial Services Committee and Ranking Member of the House Subcommittee on Housing and Insurance.