Maximum Fair Prices

The ability to afford medicines is about dignity, hope, and fairness. These words from the President have been at the center of our work to implement the Lower Cost Prescription Drug Law, also known as the Inflation Reduction Act. This week marks a historic milestone in improving health benefits for Oregon seniors and families, as the Biden-Harris Administration announced new, lower prices for 10 drugs selected for the first cycle of Medicare drug price negotiations.

As Acting Regional Director at the U.S. Department of Health and Human Services (HHS), I am excited to tell you about this new benefit that will impact Oregon seniors. As I’ve traveled around Oregon, I’ve spoken with Oregonians who are shocked to learn that – until now – the Medicare program was not allowed to negotiate directly with drug companies to help Medicare beneficiaries save on drug costs. However, the Lower Cost Prescription Drug Law changed that, allowing beneficiaries to get lower prices on drugs and strengthening the Medicare program so it will be around for our children and grandchildren.

Last year, we announced the ten drugs selected for the first cycle of negotiations, which included costly, life-saving medicines like Eliquis, a medicine used to prevent blood clots, and Januvia, a treatment for type 2 diabetes. More than 95,000 Medicare enrollees in Oregon take one of these drugs. Finally, we’re moving the needle to bring those costs down.

Today, August 15th, HHS announced the new, lower cost of these drugs. These lower prices will go into effect on January 1, 2026, starting a new era of savings for people with Medicare and the Medicare program. If these prices had been in effect in 2023, they would have saved Medicare an estimated $6 billion, or 22 percent of what Medicare spent on those drugs—that’s money saved for all taxpayers.

This is just the beginning. Under this new drug law, new drugs will be negotiated each year, helping even more seniors and people with disabilities with Medicare save money on drug costs. To read more about the drugs selected for negotiation and the new prices, go to LowerDrugCosts.gov or MedicamentosBajoPrecio.gov.

Access to life-saving prescription drugs should not force senior citizens and their families to make gut-wrenching decisions, like choosing between food and medication. That is why this law is so important, and this week, we are proud to implement this change to the Medicare program so American seniors can get better prices for the drugs they need.