by AARP August 12
Bill Allows Medicare to Negotiate Lower Drug Prices and Caps Out-of-Pocket Spending on Medications for Seniors
On August 12 the House voted to pass the Inflation Reduction Act of 2022, a bill that includes several key provisions to lower the prices of prescription drugs. AARP Minnesota thanks Representatives Angie Craig, Betty McCollum, Ilhan Omar, and Dean Phillips for supporting this critical legislation that will bring real relief for seniors. The bill now goes to President Biden for his signature.
The Inflation Reduction Act includes key AARP priorities that will go a long way to lower drug prices and out-of-pocket costs. AARP fought for provisions in the bill that will:
- Finally allow Medicare to negotiate the price of drugs
- Cap annual out-of-pocket prescription drug costs in Medicare Part D ($2,000 in 2025)
- Hold drug companies accountable when they increase drug prices faster than the rate of inflation, and
- Cap co-pays for insulin to no more than $35 per month in Medicare Part D.
Jo Ann Jenkins, AARP Chief Executive Officer, issued a statement reacting to the House vote.
“Today is a momentous day for older Americans. By passing the Inflation Reduction Act, Congress has made good on decades of promises to lower the price of prescription drugs. Seniors should never have to choose between paying for needed medicine or other necessities like food or rent, and tens of millions of adults in Medicare drug plans will soon have peace of mind knowing their out-of-pocket expenses are limited every year.
“Many people said this couldn’t be done, but AARP isn’t afraid of a hard fight. We kept up the pressure, and now, for the first time, Medicare will be able to negotiate with drug companies for lower prices, saving seniors money on their medications.
“I thank the House members whose votes today will bring real relief to millions of Americans, and I look forward to President Biden signing this bill into law.”
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