Consumer advocates have long detailed how older adults struggle to manage the cost of their medications but hope is emerging in Minnesota and elsewhere with federal changes taking shape.
Under the Inflation Reduction Act, several provisions were established to address the skyrocketing costs of prescription drugs, with most of the efforts focused on Medicare enrollees.
Michael Cabonargi, regional director for the U.S. Department of Health and Human Services, visited Minneapolis this month to help outline some of the estimated savings. The Biden administration recently unveiled price reduction agreements for the first group of Medicare-covered drugs included in negotiations with manufacturers.
“This is the first 10 drugs, again, the most prescribed, most expensive for things like hypertension, diabetes, cardiovascular disease,” Cabonargi explained. “We’re going to be expanding that.”
The first wave of price controls takes effect next year and in 2025, Medicare will select up to 15 additional drugs covered under Part D for negotiation. The group Protect Our Care Minnesota said over time, the federal law will save older Minnesotans more than $113 million. Drugmakers have criticized the policy changes, arguing they will hurt innovation.
Separately, AARP said out-of-pocket drug cost caps of $2,000, also beginning next year, will result in average savings of roughly $1,500 for those who qualify.
Cabonargi noted when you take a step back, it appears consumers are beginning to get a fair shake under the Inflation Reduction Act.
“It really is going to change the trajectory of health care expenses in this country,” Cabonargi contended. “For seniors in particular, they’re going to have money back in their pocket.”
The federal moves have faced political headwinds, with Republican lawmakers facing calls from conservative groups and strategists to roll back provisions. Meanwhile, Protect Our Care said nearly 30,000 Minnesotans on Medicare who use insulin are now saving on average $672 annually under a monthly price cap.