As Medicare Open Enrollment Period Begins, Warren Highlights More Than $170 Million in Prescription Drug Savings for Massachusetts Seniors
New report from Warren’s office, A Prescription For Savings, shows how the Inflation Reduction Act is saving seniors millions of dollars, while holding Big Pharma price-gougers accountable.
Boston, MA – On the first day of the Medicare open enrollment period for Plan Year 2025, U.S. Senator Elizabeth Warren (D-Mass.) released a new report, A Prescription for Savings, outlining six key reforms in the Inflation Reduction Act (IRA) that are helping Massachusetts seniors save on prescription drugs.
“The IRA will save Bay Staters enrolled in Medicare a total of over $170 million on prescription drug costs in 2025 alone,” according to the report. “The IRA has created more accessible, more equitable, and more affordable prescription drug coverage for seniors and individuals with disabilities in Massachusetts.”
“This new report provides critical information to seniors and others in Massachusetts about how they will save money when selecting a Medicare prescription drug plan for next year,” said Senator Warren. “I’ve worked hard to rein in Big Pharma's price-gouging and lower health care costs through the Inflation Reduction Act, and Medicare enrollees will see significant savings as a result.”
Thanks to the Biden-Harris Administration and Democrats in Congress, the IRA will save Medicare enrollees billions of dollars on prescription drugs costs nationwide. The report highlights six ways Massachusetts Medicare enrollees will save in 2025 and beyond:
- $35 monthly insulin: Out-of-pocket costs for insulin are now capped at $35 per month for Medicare enrollees. More than 26,000 Massachusetts Medicare enrollees who use insulin can expect about $500 in annual savings in 2025 – an estimated total savings of nearly $13 million.
- $2,000 cap on out-of-pocket drug costs: New out-of-pocket caps in Medicare Part D will help 83,000 enrollees in Massachusetts save an average of $1,500 on their out-of-pocket prescription drug costs – an estimated savings of over $124 million annually.
- Free vaccines: For more than 1.1 million Massachusetts Medicare enrollees, recommended vaccines are now covered pre-deductible and without cost-sharing. This will save Massachusetts Medicare enrollees about $5 million per year.
- Penalties for drug manufacturers that jack up prices faster than inflation: The IRA, for the first time, penalizes drug manufacturers that raise prices faster than inflation, helping an estimated 17,000 Massachusetts residents save on their prescription drugs.
- Expanded support for low-income enrollees: Approximately 5,000 low-income Medicare enrollees in Massachusetts will save around $30 million per year due to the IRA’s expansion of the Medicare Part D “Extra Help” program.
- Negotiations to lower drug prices: For the first time, Medicare can directly negotiate prices with drug manufacturers for a select number of high-priced drugs. Nearly 200,000 Part D enrollees in Massachusetts use at least one prescription drug that will see price reductions when the new negotiated prices take effect in 2026.
Senator Warren has led the fight to hold drug manufacturers accountable for high drug costs:
- In March 2022, at a hearing of the Senate Finance Committee, Senator Elizabeth Warren called out drug manufacturers for price-gouging Americans on prescription drugs. As Americans deal with high prices across the economy, Senator Warren is pushing for reforms that will lower drug prices and stop Big Pharma from taking advantage of consumers.
- In February 2022, during a hearing of the Senate Finance Subcommittee on Fiscal Responsibility and Economic Growth, Senator Elizabeth Warren questioned witnesses about how corporate profiteering in the pharmaceutical, insurance, and financial industries is contributing to excessive costs for Medicare.
- In February 2022, Senators Elizabeth Warren, Angus King (I-Maine), and Congressman Lloyd Doggett (D-Texas) urged HHS to exercise march-in rights for life-saving cancer drug Xtandi to dramatically lower its price for millions of Americans. She also called out big pharma and insurance companies’ tricks to squeeze taxpayers and Medicare beneficiaries. And she called for passage of the Build Back Better Act, which includes provisions that could generate billions in savings and give the Department of Health and Human Services the authority to negotiate prices on some high-price drugs.
- In June 2021, Senator Elizabeth Warren led a letter questioning PhRMA's lobbying efforts to block policies that would lower drug costs for millions of Americans.
- In May 2021, at a hearing of the Senate Finance Committee, Senator Warren called for trade negotiations that put patients over big pharma profits.
- In December 2019, Senator Elizabeth Warren introduced the Affordable Drug Manufacturing Act with Congresswoman Schakowsky, to radically reduce drug prices through public manufacturing of prescription drugs, including the .
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