Ten popular medications used largely by older adults will be an average of 50% cheaper for most of Oregon’s Medicare enrollees, starting this year.
The change is a result of a new law which was part of the Inflation Reduction Act passed in 2022. It requires Medicare to negotiate with pharmaceutical companies for lower prices for common, high-cost prescription drugs.
Stacey Larson, communications director for AARP Oregon, said the new law will benefit many of the state’s nearly 940,000 Medicare beneficiaries.
“There are seniors who face very, very high out-of-pocket costs and often have to choose between utilities or their prescription drugs, and that situation is untenable,” Larson observed. “Fortunately, some relief is in sight.”
The first round of price cuts includes drugs used to treat conditions such as diabetes, heart failure, chronic kidney disease, arthritis and blood clot prevention. A second set of 15 medications is on the bargaining table right now, with a plan to debut more lower prices in 2027.
The medications in this first round are used by nearly 9 million Medicare enrollees nationwide and the changes are estimated to translate into $1.5 billion in out-of-pocket savings this year alone. Larsen explained though it is a victory, the fight for lower drug costs is not over and she predicted future negotiations will not be easy.
“Big drug companies are spending millions of dollars to delay negotiations and keep prices high,” Larson pointed out. “AARP Oregon will be fighting for older Oregonians every step of the way.”
The law also caps insulin at $35 per month for people enrolled in Medicare, makes vaccines free for conditions like shingles and requires rebates when companies raise prices faster than inflation.
