Casey: Democrats and the Inflation Reduction Act paved the way for lower drug pricing announcement
Washington, D.C. – U.S. Senator Bob Casey (D-PA) released a statement today on Eli Lilly’s announcement to automatically cap out-of-pocket insulin costs at $35 a month. In August 2022, Democrats in Congress passed the Inflation Reduction Act (IRA), which is already lowering costs and improving health care for millions of Americans. Effective January 1, 2023, insulin copays are capped at $35 per month for more than three million people with diabetes covered by Medicare. Despite efforts by Democrats to expand the cap to the private market, a majority of Senate Republicans blocked the provision, leaving millions of Americans to continue to pay exorbitant prices for lifesaving medication.
“Democrats fought hard to lower the cost of insulin in the Inflation Reduction Act. Though Senate Republicans blocked us from cutting insulin costs for millions of Americans who need it, we still delivered relief for many. The Inflation Reduction Act is not the end of the conversation, but the beginning. Democrats are going to keep fighting to lower everyday costs for Americans and ensure that families don’t have to choose between their health and their bank account,” said Senator Casey.
Starting January 1, 2023, drug manufacturers are required to pay rebates to Medicare if they increase their prices for certain drugs at a rate that exceeds the rate of inflation. Thanks to the IRA, adults on Medicare Part D have access to covered vaccines, such as shingles and Tdap, at no cost. In addition to capping annual out-of-pocket costs, the IRA expands cost-sharing assistance for low-income people with Medicare, a provision Senator Casey championed through his Lowering Medicare Premiums and Prescription Drug Costs Act. These policies alone save seniors in Pennsylvania and across the country hundreds of dollars on their health care costs, keep millions of people healthy, and prevent dangerous complications associated with diabetes, shingles, and other serious diseases.
