Welch applauds historic step in lowering drug prices for Vermont Medicare enrollees

More than 19,000 Vermonters and Nearly Nine Million Medicare Beneficiaries Nationwide Use at Least One of the 10 Prescription Drugs Selected; New Lower Prices Begin Jan. 1, 2026

Vermont Business Magazine In an historic moment today, the Biden-Harris Administration announced millions of Medicare enrollees across America will benefit from lower prescription drug costs made possible by the passage of the Inflation Reduction Act. New prices for the first 10 drugs will go into effect for enrollees of Medicare Part D prescription drug coverage beginning January 1, 2026, and will save patients 38-79% off the list price of drugs. 

Senator Peter Welch (D-Vermont) championed this policy as a member of the House of Representatives, and successfully fought to include policies within the Inflation Reduction Act to end the ban on Medicare negotiating lower drug prices for seniors. 

“This is a huge deal and it’s just the beginning. We made drug price negotiation a keystone of the Inflation Reduction Act because we believe seniors and hardworking families shouldn’t get ripped off by Big Pharma. Now, on the eve of the two-year anniversary of this bill’s signing, 10 of the drugs that Medicare has been paying too much for will actually have a fair price. For too long Big Pharma has gotten away with charging exorbitant prices, but that ends now,” said Sen. Peter Welch. “I’m proud to work with the Biden-Harris White House to change how the government does business with the pharmaceutical industry.” 

This is just one historic step forward in Congressional Democrats’ and the Biden-Harris Administration’s work to lower the cost of prescription drugs. In addition to today’s historic news, Medicare will continue to negotiate for up to 60 prescription drugs covered under Medicare Part D and Part B. The Inflation Reduction Act capped the price of insulin at $35 for Medicare beneficiaries. After the cap went into effect, the top three producers of insulin reduced the price of insulin for all Americans who need it. Seniors on Medicare and adults with Medicaid coverage can get their recommended vaccines free of charge, thanks to expanded health care provisions included in the IRA.  

Two of the drugs included in today’s announcement were part of the investigation by the House Oversight Committee into pharmaceutical pricing and abusive business practices.  The Committee found that if Medicare Part D plans had secured the same discounts as other federal health care programs empowered to negotiate between 2014 and 2018, Medicare would have saved $2.3 billion on Enbrel and $1.6 billion on Imbruvica.   

The 10 drugs with lower prices include:  

Source: White House

Senator Welch has been a longtime champion of legislation to lower the cost of prescription drugs for Vermonters and all Americans. In addition to cosponsoring the Elijah E. Cummings Lower Drug Costs Now Act, which was the driving force of the Inflation Reduction Act (IRA), this Congress the Senator also co-led the introduction of the Strengthening Medicare and Reducing Taxpayer (SMART) Prices Act with Sen. Amy Klobuchar, which will build on the success of the provisions within the IRA and empower the Department of Health and Human Services to negotiate for even more drugs in Medicare Part D and as soon as five years after approval by the FDA.  

Welch 8.15.2024

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