Millions Of Older Adults Struggle To Afford Their Prescription Medication
Legislation Would Expand On Law That Lowers Costs For Prescription Drugs That Treat Diabetes, Kidney Disease, And Other Common Conditions
Today, U.S. Senator Kirsten Gillibrand, the top-ranking Democrat on the Senate Aging Committee, held a virtual press conference to discuss the Strengthening Medicare and Reducing Taxpayer (SMART) Prices Act, legislation to reduce the cost of prescription drugs for seniors.
The bill would lower the cost of some of the most expensive and commonly used prescription medications by enhancing the Department of Health and Human Services’ (HHS) ability to negotiate directly with pharmaceutical companies on the price of certain prescription drugs covered under Medicare Part D. This will lower costs for people with Medicare while simultaneously reducing drug spending by the federal government.
“Even with Medicare, the cost of prescription drugs can be astronomical; as a result, many seniors are forced to skip doses, cut pills in half, or otherwise alter their treatment in an attempt to save money. That is unacceptable,” said Senator Gillibrand. “In 2022, we made major progress in reducing the cost of life-saving medications by passing legislation that allowed Medicare to negotiate the price of certain prescription drugs, including those that treat diabetes, heart failure, kidney disease, and blood cancer, among other common conditions. This bill expands on that victory and makes dozens more drugs subject to price negotiations. I look forward to getting it passed.”
Throughout her time in Congress, Gillibrand has fought to lower the cost of prescription drugs. In 2022, she helped pass the Inflation Reduction Act, which capped Medicare patients’ out-of-pocket prescription drug costs at $2,000 per year; empowered Medicare to negotiate prescription drug prices; and regulated price increases by drug companies. She is an original cosponsor of the Medicare for All Act, which would provide every American with prescription drug coverage at an affordable cost. In 2023, she joined a bipartisan push to lower out-of-pocket costs for prescription drugs by limiting the use of harmful “copay accumulators,” which prevent copay assistance from counting toward a patient’s deductible or out-of-pocket maximum and make it harder for patients to afford their medications.
Specifically, the SMART Prices Act would:
- Increase the number of drugs and biologics – medications like insulin that come from living sources – that HHS must negotiate to a minimum of 50 drugs in 2028 and for each subsequent year.
- Increase the amount of savings that Medicare can negotiate off the list price for each drug by adjusting the maximum fair price (MFP) thresholds to match the MFP thresholds that the VA, DOD, and U.S. Public Health Service use in their price negotiations for prescription drugs.
- Shorten the length of time that drugs and biologics need to be on the market following FDA approval before becoming eligible for negotiation.
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