Negotiating Pharmaceutical Prices is Great for All Americans

The cost of Prescription Drug prices in the United States can be lowered if Medicare and Medicaid are allowed to negotiate their pricing. Over 43% of Van Buren County residents are on Medicare, Medicaid or have no health insurance, so the price of prescription medications can often be unaffordable.

Affordability is a big problem when those prescriptions are needed for diabetes, cancer, and other life-threatening illnesses. Even more astounding is the number of Americans needing drugs for diabetes. 29.2% of ALL ADULTS 65 years of age and over are diabetic (this includes both undiagnosed and diagnosed cases).

It came as a relief across the United States in 2022 when as part of the Inflation Reduction Act, Medicare was allowed to negotiate the prices of non-generic medications se prices with pharmaceutical companies (Big Pharma). By January 2023, Medicare negotiated a monthly cap on the cost of insulin to $35 per month for each Medicare participant who needed this drug.

Before this, Manufacturers charged US. Customers $98.70 for insulin while all other countries in the world averaged $8.81 for the same drug, according to a 2020 study.
The good news is the Biden Administration also https://www.cms.gov/newsroom/fact-sheets/medicare-drug-price-negotiation-program-negotiated-prices-initial-price-applicability-year-2026 negotiated prices for 10 other brand-name medications including cancer and arthritis drugs. Those prices will go into effect in 2026 if they are allowed to move forward.

The problem:

On January 20, 2025, a Trump Executive Order halted the ability of Medicare to negotiate these lower prices for insulin. The impact of this Executive Order is also that pharmaceutical companies can once again, charge us what they want and drive prices higher for increased profits. This increases costs for Americans who are sick.

Also on January 20, 2025, a Trump Executive Order barred the U.S. National Institutes of Health (NIH) from talking with the public or giving any updates on price negotiations.

Negotiating drug prices for the American people and funding research into some of the worst diseases that our we and our neighbors face should be something that should be important to all administrations of our government whether they are Democrats or Republicans.

With these Executive Orders, it points to the fact that pharmaceutical companies’ profits are more important than U.S. Citizens’ needs.

Author: Rose Mary C.