HHS Secretary Becerra advocates for lower drug prices for seniors

Thousands of seniors in Minnesota who rely on Medicare health insurance are benefiting from one aspect of the Inflation Reduction Act that may have a greater impact than any other: lowering prescription drug prices for seniors.

“I call the Inflation Reduction Act our 'Prescription Drug Cost Reduction Act' because that is one of its main goals,” said Health Secretary Xavier Becerra.

On Monday, he was in St. Paul with Minnesota Senator Amy Klobuchar to address the impact of the Inflation Reduction Act on prescription drug prices.

“This will save American seniors $1.5 billion, and he's only just started,” Klobuchar said of Becerra's negotiations with pharmaceutical companies.

Under the Inflation Reduction Act, HHS can negotiate prices for 10 of the most commonly used drugs in the Medicare system. The number of negotiable drugs increases each year.

Under this law, the price of insulin is capped at $35 per month; certain vaccines such as RSV and shingles are now provided free under Medicare Part D; and pharmaceutical companies that raise their prices faster than inflation must pay Medicare rebates. Additionally, a $2,000 cap will apply to all Medicare Part D beneficiaries starting January 1.

Many economists say the Inflation Reduction Act is not primarily responsible for the decline in inflation from 9.1% in July 2022 to 2.9% today. They attribute the decline largely to lower energy prices, improved supply chains and higher interest rates.