November 2023
LOWER PRESCRIPTION DRUG AND HEALTH CARE COSTS Michiganders are starting to get much-needed relief from health care and prescription costs, thanks to President Biden’s Inflation Reduction Act (IRA). Passed by Congress and signed by President Biden just over a year ago, the IRA caps out-of-pocket prescription expenses, limits monthly insulin costs to $35 for Medicare recipients, and allows Medicare to negotiate directly with drug companies to reduce prescription medication costs. In this issue of In Union, we dive deeper into the IRA to examine how the legislation makes health care more affordable for Michigan’s working families and seniors.
“AARP has fought hard to lower prescription drug prices for decades, and we thank President Biden for signing this historic legislation to provide relief to AARP’s members and all older Americans.” Source: AARP Press Release, 8/16/2022
REAL PEOPLE. REAL STORIES ABOUT HEALTH CARE AND PRESCRIPTION DRUG COSTS.
Ginny B. lives with LEMS syndrome and relies on a drug that costs hundreds of thousands of dollars a year. She used to worry about how she would afford this life-saving medication. But thanks to the IRA’s provision capping out-of-pocket prescription drug costs for Medicare beneficiaries, soon Ginny and others like her won’t pay a dime over $2,000 per year for their prescriptions.
The Inflation Reduction Act has eliminated vaccine copays for Medicare recipients, enabling seniors like retired Michigander Susan R. to afford long-awaited vaccinations. As a senior on a fixed income, the $400 copay for the shingles vaccine had been cost-prohibitive. “But I was relieved to see I could get it at no cost after the Inflation Reduction Act passed. It’s been a major blessing to get the shingles vaccine with no copay; this is a life-changing policy.”
Source: invest.gov Source: CAP Action
Making Prescription Drugs More Affordable The Inflation Reduction Act (IRA) aims to reduce prescription drug costs in several ways, including by allowing Medicare to negotiate prices directly with pharmaceutical companies. This was a vital component of the legislation for President Biden. •
Drug price negotiation is a game-changer. For decades, the pharmaceutical industry has put profits ahead of patients struggling to afford needed medications. Finally, Medicare can negotiate directly with drug companies for lower prices.
•
Improving access to medications at affordable prices. The first round of negotiations will include 10 of the most expensive, commonly-prescribed drugs, which cost $50.5 billion—nearly 20% of the total Medicare prescription drug costs in one year.
Drug Name
Commonly Prescribed For
Eliquis
Prevention and treatment of blood clots; Reduction of risk for stroke
Jardiance
Diabetes
Xarelto
Prevention and treatment of blood clots; Reduction of risk for stroke
Januvia
Diabetes
Farxiga
Diabetes; Heart failure; Chronic kidney disease
Entresto
Heart failure
Enbrel
Rheumatoid arthritis; Psoriasis; Psoriatic arthritis
Imbruvica
Blood cancers
Stelara
Psoriasis; Psoriatic arthritis; Crohn’s disease; Ulcerative colitis
Fiasp & NovoLog
Diabetes
Sources: CNBC, 8/10/2023; CAP Action, 8/30/2023
Want to see how your member of Congress voted on the Inflation Reduction Act? Visit clerk.house.gov/Votes/2022420 to look them up for yourself.
MICHIGAN HEALTH CARE SAVINGS BY THE NUMBERS: • Nearly 673,000 Michigan seniors will save an average of $356 a year from the annual cap on out-of-pocket costs for prescription drugs. • The $35-per-month cap on insulin costs provides savings to more than 67,000 Michigan seniors. • With subsidies from the IRA that reduce costs, 63,000 Michiganders can afford health care coverage. Source: The Gander, 8/17/2023
President Biden made it a priority to ensure that the Inflation Reduction Act included provisions to lower Medicare beneficiaries’ costs for Part B medications—and we are already seeing results. The IRA requires that drug companies pay rebates if their price increases exceed the rate of inflation. Currently, there are 34 prescription drugs eligible for a rebate, saving Part B beneficiaries up to $618 per average dose. “For many Americans, the cost of one drug is the difference between life and death, dignity and dependence, hope and fear,” said President Biden, touting the cost reductions that will be achieved through the IRA. But he acknowledges more work is to be done. “That is why we will continue the fight to lower health care costs—and we will not stop until we finish the job.” Sources: kiplinger.com, 9/18/2023; The Gander, 8/29/2023
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STRIKING UAW MEMBERS WELCOME SUPPORT FROM PRESIDENT BIDEN Joining striking workers in Michigan, President Biden sent a clear message of support for unions and working people.
“For a sitting president for the first time in our history to visit a picket line, I think that goes a long way in showing where he stands with working-class people.”
“We’re out here on the frontline taking the brunt for everybody, losing money. [President Biden’s] support feels good.... It hits home with people.”
—Shawn Fain, President of UAW
—Larry Hearn, UAW committee member
Source: PBS NewsHour, 9/26/2023
Source: The Guardian, 9/26/2023
The Detroit News
News On 6/KOTV
“Biden’s message to striking auto workers: ‘You deserve a significant raise’”
“‘Stick With It’: President Biden Joins Picket Line With UAW Workers In Michigan”
9/26/2023
9/27/2023
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