WASHINGTON (CNN): Medicare’s new power to negotiate drug prices will lead to an estimated $6 billion in savings for the federal government and a $1.5 billion reduction in out-of-pocket costs for seniors when the lower prices take effect in 2026, the Biden administration announced Thursday. The negotiation program, which was authorized by the 2022 Inflation Reduction Act, has been a central talking point of the White House’s efforts to lower Americans’ cost of living, including for prescription medications, after inflation skyrocketed during President Joe Biden’s term.
Vice President Kamala Harris is expected to continue campaigning on reducing drug prices in the run-up to November’s election. “It’s a relief for the millions of seniors that take these drugs to treat everything from heart failure, blood clots, diabetes, arthritis, Crohn’s disease, and more – and it’s a relief for American taxpayers,” Biden said in a statement. Biden and Harris are expected to trumpet the results of the program in Maryland on Thursday afternoon in their first joint appearance since Biden announced he would not run for reelection and Harris replaced him as the Democratic nominee.
Many Americans – including senior citizens, a key voting bloc – don’t know about the law’s major provisions aimed at lowering drug costs for Medicare enrollees. Only 48% of voters ages 65 and older are aware that Medicare has the power to negotiate the price of some prescription drugs, accor.