The ability to afford medicines is about dignity, hope and fairness. These words from the president have been at the center of our work to implement the Lower Cost Prescription Drug Law, also known as the Inflation Reduction Act. This week marks a historic milestone in improving health benefits for Alaska seniors and families, as the Biden-Harris Administration announced new, lower prices for 10 drugs selected for the first cycle of Medicare drug price negotiations.
As acting regional director at the U.S. Department of Health and Human Services (HHS), I am excited to tell you about this new benefit that will impact Alaska seniors. As I’ve traveled around Alaska, I’ve spoken with Alaska residents who are shocked to learn that — until now — the Medicare program was not allowed to negotiate directly with drug companies to help Medicare beneficiaries save on drug costs. But the Lower Cost Prescription Drug Law changed that, making it possible for beneficiaries can get lower prices on drugs, and strengthening the Medicare program so it will be around for our children and grandchildren.
Last year, we announced the 10 drugs selected for the first cycle of negotiations, which included costly, life-saving medicines like Eliquis, a medicine used to prevent blood clots, and Januvia, a treatment for type 2 diabetes. More than 13,000 Medicare enrollees in Alaska take one of these drugs. Finally, we’re moving the needle to bring those costs down.
On Aug. 15, HHS announced the new, lower cost of these drugs. These lower prices will go into effect on Jan. 1, 2026 — starting in a new era of savings for people with Medicare and the Medicare program. If these prices had been in effect in 2023, they would have saved Medicare an estimated $6 billion, or 22 percent of what Medicare spent on those drugs — that’s money saved for all taxpayers.
This is just the beginning. Under this new drug law, new drugs will be negotiated each year and help even more seniors and people with disabilities with Medicare save money on drug costs. To read more about the drugs selected for negotiation and the new prices, go to LowerDrugCosts.gov or MedicamentosBajoPrecio.gov.
Access to life-saving prescription drugs should not force senior citizens and their families to make gut-wrenching decisions, like choosing between food or medication. That is why this law is so important and why we are proud to implement this change to the Medicare program so American seniors can get better prices for the drugs they need.
Priya Helweg is the acting regional director and executive officer for the Region 10 Office of Intergovernmental and External Affairs, Office of the Secretary, U.S. Department of Health and Human Services.
