Larsen: Inflation Reduction Act is lowering drug costs for NW Washington seniors

HHS announces first 10 drugs selected for Medicare price negotiation

||| FROM THE OFFICE OF REP. RICK LARSEN |||

WASHINGTON, D.C. – This week, the U.S. Department of Health and Human Services (HHS) announced the first 10 prescription drugs covered under Medicare Part D selected for price negotiation. In August 2022, Rep. Rick Larsen (WA-2) supported the Inflation Reduction Act, which, for the first time, authorizes HHS to directly negotiate the price of prescription drugs with participating drug companies.

“This is great news for tens of thousands of Northwest Washington seniors and their loved ones who rely on Medicare to prevent and treat diabetes, heart disease, arthritis, blood clots and cancer,” said Larsen. “Thanks to the Inflation Reduction Act, more people can focus on improving their health and well-being without worrying how they will be able afford essential prescription drugs.

“Ensuring high-quality, affordable health care is essential for people in Northwest Washington. I will continue to support long-term investments to lower health care costs, break down barriers to equitable treatment and improve overall quality of life for all Americans.”

HHS to Negotiate Prices for Commonly Used Prescription Drugs

HHS’s negotiation list includes 10 drugs used by approximately 144,000 Medicare Part D enrollees in Washington state to treat some of the most common diseases like diabetes, heart disease, arthritis, blood clots and cancers. The negotiations with participating drug companies will occur in 2023 and 2024, and any negotiated prices will become effective beginning in 2026.

The list of drugs includes*:

• Eliquis
  • Used to prevent and treat blood clots
  • 58,000 Washington enrollees benefit from Eliquis
• Jardiance
  • Used to treat diabetes and heart failure
  • 26,000 Washington enrollees benefit from Jardiance
• Xarelto
  • Used to prevent and treat blood clots; reduces risk for patients with coronary or peripheral artery disease
  • 27,000 Washington enrollees benefit from Xarelto
• Januvia
  • Used to treat diabetes
  • 9,000 Washington enrollees benefit from Januvia
• Farxiga
  • Used to treat diabetes, heart failure and chronic kidney disease
  • 6,000 Washington enrollees benefit from Farxiga
• Entresto
  • Used to treat heart failure
  • 6,000 Washington enrollees benefit from Entresto
• Enbrel
  • Used to treat rheumatoid arthritis, psoriasis and psoriatic arthritis
  • Fewer than 500 Washington enrollees benefit from Enbrel
• Imbruvica
  • Used to treat blood cancers
  • Fewer than 500 Washington enrollees benefit from Imbruvica
• Fiasp; Fiasp FlexTouch; Fiasp PenFill; NovoLog; NovoLog FlexPen; NovoLog PenFill (insulin)
  • Used to treat diabetes
  • 11,000 Washington enrollees benefit from this drug

*Enrollee estimates from HHS for the time period between June 1, 2022 and May 31, 2023

The Inflation Reduction Act is Benefiting Washington State

In August 2022, Larsen supported the Inflation Reduction Act, a bold, long-term investment to lower the cost of health care and prescription drugs for working families and seniors, make a historic down payment to combat climate change, create green jobs, and cut the deficit by $300 billion.

So far, the Inflation Reduction Act is creating jobs and reducing everyday costs in Washington state*:

• Thanks to the Inflation Reduction Act, the approximately 29,000 people who signed up for an Affordable Care Act marketplace plan in Northwest Washington are saving an average of $1,110 on their health insurance.
• With the $35/month cap on insulin prices in the law, approximately 3,400 Medicare beneficiaries in Northwest Washington are saving an average of $570 each year on their insulin.
• Approximately 344,000 people in Washington state will save an average of $410 on prescription drugs every year when cost-reducing policies in the law – like a $2,000 cap on annual out-of-pocket pharmacy costs for Americans with Medicare – go into effect in 2025.
• Historic investments in the law have delivered at least 870 new green jobs and more than $1.89 billion in investments to Washington state.

*Estimates from House Budget Committee Democrats