Iowa Democrats and the Biden administration are celebrating a new federal law that allows for the negotiation of Medicare drug prices, potentially leading to savings for Iowans. The measure is part of the Inflation Reduction Act and aims to reduce the cost of prescription drugs for the government and lower out-of-pocket expenses for Medicare participants.
According to federal data, approximately 36,000 Iowans on Medicare pay an average of $650 per year for the blood thinner medication Eliquis. Under the new law, this copay could potentially decrease in the coming years. The Biden administration has highlighted the potential cost savings for the first 10 drugs that they plan to negotiate in the future. However, it should be noted that any lower prices resulting from negotiations will not take effect for three years.
Iowa’s average out-of-pocket costs for some of the most commonly used drugs, including Eliquis, Xarelto (another blood thinner), and Jardiance (a diabetes treatment medication), are among the highest in the country. In 2022, Iowa ranked fifth in terms of average annual out-of-pocket costs for these drugs, with only Nebraska, North Dakota, South Dakota, and Wyoming having higher costs.
The Centers for Medicare and Medicaid Services (CMS) administrator, Chiquita Brooks-LaSure, stated that allowing Medicare to directly negotiate the prices of prescription drugs will help improve access and affordability. The aim is to ensure that life-saving medications are accessible to those who need them, lower costs for Medicare, and strengthen the program for current and future generations.
The Inflation Reduction Act also includes provisions such as a $2,000 annual cap on out-of-pocket drug costs for Medicare beneficiaries starting in 2025 and a cap of $35 per month for insulin costs. However, the legislation faced opposition from Republicans, with all six Iowa Republicans voting against it. Republicans expressed concerns about potential limitations on future drug development if medications could be subjected to negotiation under the Medicare program.
Iowa Democrats are calling on Republican presidential candidates campaigning in the state to clarify their stance on the legislation and the negotiation of Medicare drug prices.
Overall, the new federal law allowing for the negotiation of Medicare drug prices is being celebrated by Iowa Democrats and the Biden administration, as it has the potential to lower out-of-pocket costs for Medicare participants and reduce the overall cost of prescription drugs for the government. However, the implementation of lower prices may face challenges such as litigation from drugmakers and criticism from Republicans.
