–Statement by Fred Riccardi, president of the Medicare Rights Center–  

New York, NY—As we celebrate two years since the passage of the landmark Inflation Reduction Act (IRA), we commend the Biden-Harris administration, which announced today the results of the initial round of drug price negotiation made possible by the law.  

The administration projects that people with Medicare will save $1.5 billion in out-of-pocket costs in 2026, the first year the negotiated prices will be in effect. Due to lowered prices on ten drugs, Medicare is expected to save at least $6 billion in 2026, and savings will continue accumulating in the following years.  

These savings will bring much-needed relief to millions of people with Medicare and the Medicare program. The medications chosen for negotiation are often high-cost medications used to treat conditions such as cancer, diabetes, blood clots, heart failure, autoimmune conditions, and chronic kidney disease. More than 8.8 million Medicare beneficiaries used these medications in 2023 alone.  

We applaud this monumental milestone in curbing rising drug prices, helping older adults afford their medications, and reducing taxpayer costs. The effect of these negotiations will build upon itself yearly as more drugs have prices that better reflect their value.