Rep. Courtney Applauds New Rx Cost Savings for Seniors

NORWICH, CT – Today, Rep. Joe Courtney (CT-02) applauded the Biden-Harris administration for successfully lowering prices by up to nearly 80% for some of the most expensive, popular drugs taken by people on Medicare. Previously, Medicare was banned from common sense negotiations, but the ban was overturned in the Inflation Reduction Act, which Courtney voted to pass on August 12, 2022 and was signed into law two years ago tomorrow.

Today’s announcement follows the conclusion of the administration’s successful negotiations with drug manufacturers.  When these new, lower prices go into effect on January 1, 2026, people on Medicare will save $1.5 billion in out-of-pocket costs for their prescription drugs and Medicare will save $6 billion in the first year alone.

“Today’s significant announcement reflects Congress’ intent when we empowered Medicare to take on big drug companies and negotiate prices to lower costs for seniors. From blood thinners to diabetes and arthritis medications, these new cost savings, ranging from nearly 40 to 80 percent discounts, will make a major difference in ensuring seniors can affordably access some of the most commonly taken drugs. Finally, American seniors won’t be paying 2.5 times more than the rest of the world for the medications they need,” said Rep. Joe Courtney. “The successful outcome of the Medicare price negotiations is exactly why we should pass the Lower Drug Costs for American Families Act and extend these benefits to all Americans.”

In addition to these new drug price savings, the Inflation Reduction Act has lowered the cost of prescription drugs for seniors through:

• a $35 cap on monthly insulin copays,
• free shingles and other recommended vaccinations,
• a $2,000 out-of-pocket cap on prescription drugs beginning in 2025, and
• protections from drug company price hikes.

Here’s how these provisions are helping people in Connecticut:

• 11,444 Connecticut residents on Medicare who use insulin are now saving on average $590 annually thanks to the $35 per month insulin cap
• 89,054 Connecticut residents are saving an average of $713 on monthly health insurance premiums.
• 255,900 Connecticut residents will save an average $367.55 thanks to the Inflation Reduction Act’s $2,000 annual out-of-pocket cost cap, effective in 2025. In 2022, 403,946 Connecticut residents on Medicare but not on a low income subsidy spent an average of $509 out-of-pocket on prescription drugs.
• 129,913 of Connecticut’s seniors, 22 percent of the state’s Part D population, received the shingles vaccination and other recommended vaccinations free of cost last year  

To read a statement from President Biden, click here.

To read a statement from Vice President Harris, click here.

For a fact sheet, click here.

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