President Biden touts drug savings for Medicare beneficiaries as changes roll out

WASHINGTON – Seniors could save an average of $70 a year on vaccines under Medicare changes President Joe Biden touted Wednesday to argue his efforts to reduce health care costs are working.

Medicare recipients may also pay less for medicines administered at the doctor’s office if receiving one of 27 drugs whose prices have risen faster than inflation.

The administration also announced Wednesday how it will select 10 drugs for price negotiations with manufacturers and how those negotiations will happen. The chosen drugs will be announced in September.

"After decades of trying to take on Big Pharma, we’ve finally, finally won," Biden said during remarks at the University of Nevada in Las Vegas, where he spoke next to a group of people wearing scrubs and white coats. "Now, instead of paying whatever the drug company wants to charge you, Medicare will be able to negotiate prices."

The Medicare changes are part of a massive bill passed last year to address health costs, make historic investments in clean energy and raise taxes on corporations.

Biden has made health care costs – particularly for prescription drugs – a big emphasis as he prepares for an expected re-election bid.

In Las Vegas, Biden was introduced by David Berman, a Medicare beneficiary who said he's now paying 50% less for insulin.

“President Biden lowered the cost of insulin, and he has rolled up his sleeves to work on lowering drug costs across the board,” Berman said.

Biden said polls show his plans are popular – "a hell of a lot more popular than I am" – so "this is no time to turn around."

What’s happening on vaccines?

As of January, recommended vaccines such as Tdap and shingles are free for people with Medicare prescription drug coverage.

If that provision had been in place in 2021, 3.4 million people on Medicare would have saved an average of $70 per person, according to a report released Wednesday by the Department of Health and Human Services.

The administration expects the number of people who will benefit from the provision to be higher than 3.4 million because more Medicare beneficiaries could get vaccines now that there are no out-of-pocket costs.

What’s happening on physician-administered drugs?

Pharma companies that increase prices above inflation levels must pay rebates to Medicare starting this year.

The Biden administration announced Wednesday that provision applies to 27 physician-administered drugs, which means some Medicare beneficiaries will pay less for those drugs starting next month. Costs for seniors could drop by $2 or as much as $390 per average dose. The amount of savings depends on what kind of supplemental coverage a senior may have, as well as how much medicine they’re getting and how often.

The administration argues the provision also provides general protection against large out-of-pocket increases for seniors by giving drugmakers an incentive to keep prices from rising so much that they have to pay the rebates.

What’s happening on price negotiation?

In one of the biggest victories for Democrats, the Inflation Reduction Act requires Medicare to negotiate prices for some high-cost drugs. The federal agency will select the first 10 drugs to negotiate in September, but price changes won't begin until 2026.

Biden has proposed expanding negotiations to include more drugs, speeding up the process and expanding the scope of rebates. That’s part of his plan to extend the solvency of Medicare without reducing benefits. But Republicans have rejected Biden’s plan.

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This article originally appeared on USA TODAY: Biden touts Medicare drug savings from Inflation Reduction Act