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Lowering drug prices for all Americans

3 minutes reading time

Frank Pallone Jr.
| Special to the USA TODAY Network

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For more than two decades, Democrats have fought for justice in a health care system that is rigged against the American people and in favor of big drug companies. I have been on the front lines, working tirelessly to give Medicare the ability to negotiate lower prescription drug prices – a common-sense solution that Republicans have consistently blocked. While big drug companies raked in billions, families struggled to afford their medicines.

But this year, we can finally turn the tide, thanks to the Inflation Reduction Act. As one of the architects of the Inflation Reduction Act, I made sure Medicare drug negotiations were at the center of this historic legislation. Standing alongside President Biden as he signed the bill was a pivotal moment. For the first time in history, Medicare can negotiate drug prices, benefiting more than 1.3 million New Jersey enrollees and saving an estimated $101 million in the first year alone. Nationally, it will lower prices on some of the most expensive Medicare drugs, saving seniors $1.5 billion in the first year alone.

We've already seen the impact that lower drug prices can have. After Democrats capped insulin costs at $35 for Medicare beneficiaries, major drugmakers like Eli Lilly, Novo Nordisk, and Sanofi responded by offering the same low prices to many Americans, including those with private health insurance or no insurance at all. This proves that with the right pressure, we can force real, tangible changes that improve lives. The recent Medicare drug pricing negotiations will continue this trend, saving beneficiaries billions in out-of-pocket costs in the coming years for critical drugs used to treat diseases like diabetes, heart disease, arthritis, and blood cancers, with price cuts ranging from 79% for Januvia to 38% for Imbruvica.

But the work doesn't stop there. My bill, the Lowering Drug Costs for American Families Act, aims to extend these benefits to those with private insurance. It would expand drug price negotiations to all Americans with private insurance and increase the number of drugs subject to negotiations each year from 20 to 50. That would broaden the reach of the program and lead to even greater savings.

In addition, my bill would ensure that private health insurance recipients are protected from unfair price increases on existing drugs by extending the inflation penalties currently in place in the Medicare program to private health insurance recipients. This provision ensures that drug manufacturers cannot raise their prices faster than the rate of inflation, so consumers are not ripped off at the pharmacy counter for the drugs they need.

This is our chance to make history again. Let's seize the opportunity and finish the job of making medicine more affordable for all Americans.

Representative Frank Pallone Jr. represents New Jersey's 6th congressional district and is the ranking member of the House Energy and Commerce Committee.

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