Washington, D.C. – Today, the U.S. Department of Health and Human Services (HHS) announced key dates and implementation details for the first year of the Medicare Drug Price Negotiation Program included in the Inflation Reduction Act. Thanks to the landmark law which includes the framework from Rep. Peters’ Reduced Costs and Continued Cures Act, Medicare will negotiate prescription drug prices beginning this year for the first time in history. The first negotiated prices will go into effect in 2026.
“For decades, lawmakers have failed to pass laws that ensure Americans can afford the medications they rely on,” said Rep. Peters. “The drug price negotiation provision of the Inflation Reduction Act, based on my plan, finally got this done. Starting this year, HHS will identify the first ten prescription drugs subject to price negotiation and bring drug companies to the table to negotiate lower prices for Medicare beneficiaries. Delivering these results for San Diegans is the reason I came to Congress and I will continue my work to improve Americans’ quality of life.”
A provision in the Inflation Reduction Act requiring drug manufacturers to pay rebates for price increases that exceed inflation for drugs used by Medicare beneficiaries was also included in Peters’ drug pricing legislation. The beginning of this year also established a $35 maximum for a month’s supply of insulin for seniors on Medicare due to the Inflation Reduction Act.