The Biden-Harris administration announced Thursday that for the first time in history, Medicare can now negotiate drug prices, thanks to the Inflation Reduction Act, which was signed into law in 2022 by President Biden with Vice President Harris casting the tie-breaking vote.
The negotiation program could lead to an estimated $6 billion in savings on prescription drug costs for American taxpayers. People enrolled in Medicare with Medicare Part D prescription drug coverage are expected to save $1.5 billion in out-of-pocket costs beginning in 2026. The Congressional Budget Office estimated that the program will save Medicare $100 billion over the next ten years.
