For the first time since it was created in 1965, Medicare will be able to negotiate the price of some drugs, just like the Department of Veterans Affairs (VA) has always done. That’s the result of decades of persistent work by Democrats, starting way back in the 1990s in the Clinton administration and continuing through the passage of the Inflation Reduction Act (IRA) last week.
That history plus an explainer for how it all came together this time can be found in Jonathon Cohn’s detailed story at Huffington Post. The story also contains a caution— This is a limited reform that needs to be built on and that could be rolled back with a Republican Congress or administration.
Nevertheless, the drug price negotiation provision is a big deal because it finally has broken the pharmaceutical industry lobby’s hold. “Pharma did not lay down their weapons in this fight,” Larry Levitt, executive vice president at the Henry J. Kaiser Foundation, told HuffPost. He’s right. The industry spent more than $187 million so far in 2022, employing 1,587 lobbyists to influence Congress. “This was unquestionably the biggest political loss Pharma has suffered,” Levitt continued.
Keeping Congress in Democratic hands is more important now than it’s ever been. Donate now to help keep Democratic majorities in the House and Senate.
The measure is definitely limited. It starts with just 10 drugs under Medicare Part B (hospital or providers coverage) and D (enrollees part) to start with, then another 15 drugs in 2027 and 2028. The number rises to 20 drugs a year in 2029 and beyond. But it also requires drug companies to provide rebates if their prices increase more than the rate of inflation. It caps Medicare enrollees’ out-of-pocket drug costs at $2,000 annually beginning in 2024, and expands eligibility for prescription drug benefits in the Part D low-income subsidy program.
Campaign Action
Between now 2026 when the price negotiation is supposed to start, a lot can happen. Pharma isn’t going to stop fighting, either in courts or in Congress. The story of how long it took to make it happen shows just how easy it would be to reverse should Democrats’ lose either chamber in Congress. Remember, not a single Republican voted with Democrats to pass the IRA, despite the fact that the Medicare provisions in the bill are extremely popular, even with Republicans.
Which means this year’s election is critical. “As always, the outcomes of elections have consequences,” Levitt in a New York Times essay. “In fact, with the effects of drug price negotiation delayed until 2026 and enhanced ACA premium assistance expiring that year, these elections and the ones in 2024 could well determine the shape of health care affordability into the future.”
There are thousands of elections on the ballot this year, and Democratic campaigns all over the country need your help to get out the vote. Mobilize is your one-stop shop to get connected with campaigns anywhere in the country that need volunteers to call, text, write, and knock on doors. Click here to view GOTV opportunities near you.
RELATED STORIES: