US President Joe Biden and Vice President Kamala Harris announced a "historic" agreement on Thursday to cut prices on 10 major drugs for seniors, bolstering presidential candidate Harris' economic message.
The deal with drugmakers will save seniors in the United States $1.5 billion and $6 billion for the federal health insurance program Medicare in the first year, Biden and Harris said in a statement released by the White House.
The Inflation Reduction Act of 2022, signed by President Joe Biden, allows the Medicare program to negotiate prices on some of the most expensive drugs the program covers for 66 million people. The new prices, which will take effect in 2026, are set to be unveiled later today.
People covered by Medicare, which mostly serves Americans age 65 and older, will also save $1.5 billion on prescription drug costs that year, the administration said. The drugs include popular diabetes treatments Januvia and Jardiance, blood thinners Eliquis and Xarelto, and the blood cancer drug Imbruvica.
The statement did not provide further details about the new prices.
The Democratic-led administration hopes the cost savings will help ease Americans’ anger over high prices, an issue they often say is their top concern ahead of the contested Nov. 5 presidential election between Democratic Vice President Kamala Harris and Republican former President Donald Trump.
“Every American should be able to access the health care they need, regardless of income or wealth,” said Harris, who is holding events this week on her plans to cut costs.
The Senate vote passed Harris’s bill allowing drug price negotiations, which was not co-sponsored by any Republican.
In a statement, she also pointed to her work as California’s attorney general in holding “big pharma accountable for their deceptive and illegal practices.”
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