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CONCORD, N.H. — On Tuesday, President Joe Biden emphasized the financial benefits of prescription drug savings for seniors as he aims to solidify his legacy amid the upcoming election season. In his address, he criticized Republican presidential candidate Donald Trump, stating, “He has no concept of anything. No plan.”
Joining Biden at Concord Community College was Vermont Senator Bernie Sanders, whom Biden defeated in the 2020 Democratic presidential primary. The two leaders came together to highlight a recent report from the Department of Health and Human Services that revealed nearly 1.5 million individuals enrolled in Medicare saved about $1 billion on prescription medications in the first half of the year.
The report’s findings were largely attributed to a new cap on out-of-pocket prescription drug expenses, a key element of the expansive climate and healthcare legislation that the Biden administration successfully passed through Congress in 2022. This law established an annual limitation of $3,500 on drug costs for Medicare beneficiaries and made several vaccinations, such as the shingles vaccine, available at no charge for older Americans.
Biden further noted that the prescription drug savings extend beyond individual seniors, stating, “It’s also saving taxpayers billions of dollars.” In the coming year, the out-of-pocket cap for Medicare recipients will decrease to $2,000 annually, which is expected to provide additional savings for those with significant health issues. However, this development has also led to increased premiums for some prescription drug plans, despite government efforts to minimize these costs through substantial payments to insurers from the Medicare trust fund. Some insurance companies have responded by significantly raising their plan rates or withdrawing from certain markets.
During a flight aboard Air Force One to New Hampshire, White House Press Secretary Karine Jean-Pierre was questioned about the potential use of the Medicare trust fund to address the rising costs. Although lacking specific details, she noted, “Because of the work this administration has done,” seniors are “seeing the results of that.”
Looking ahead, the legislation is anticipated to provide long-term financial relief for both taxpayers and Medicare beneficiaries. For the first time, the federal government will engage in negotiations over the costs of 10 of the most expensive drugs covered by Medicare. The negotiated prices, which were announced in August, are set to come into effect in 2026. Currently, taxpayers spend over $50 billion annually on these high-cost medications, which include well-known drugs like blood thinners Xarelto and Eliquis, as well as diabetes medications Jardiance and Januvia.
The Congressional Budget Office, which operates independently and provides budgetary analyses, estimates that these negotiations will yield savings of around $3.7 billion for taxpayers in the initial year. Additionally, Biden and Sanders had plans to visit a local campaign office to rally support for Democratic candidates ahead of the state governor election in November. Their focus remained on state-level candidates as Vice President Kamala Harris prepares to run against former President Trump in the general election scheduled for November 5.
Sanders previously competed for the presidency in both 2016 and 2020. Biden, who was generally considered the frontrunner for his party’s nomination for reelection, faced significant criticism following a poor showing in a debate against Trump in June and subsequently ended his presidential campaign under pressure from fellow Democrats.
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