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- The biden-Harris Administration announced on January 16, 2026, a series of actions aimed at further lowering prescription drug costs for seniors and people wiht disabilities, building on the...
- the Inflation Reduction Act allows medicare to negotiate the prices of certain high-cost prescription drugs, directly lowering costs for beneficiaries. This negotiation process began in 2023, with the...
- The Centers for Medicare & Medicaid Services (CMS) estimates that the 10 drugs selected for the first round of negotiation will save seniors an estimated $42.1 billion over...
Biden-Harris Administration Announces New Actions too Lower Prescription Drug Costs
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The biden-Harris Administration announced on January 16, 2026, a series of actions aimed at further lowering prescription drug costs for seniors and people wiht disabilities, building on the progress made through the Inflation Reduction Act.
Lowering Costs Through Medicare Negotiation
the Inflation Reduction Act allows medicare to negotiate the prices of certain high-cost prescription drugs, directly lowering costs for beneficiaries. This negotiation process began in 2023, with the first negotiated prices taking effect in 2026.
The Centers for Medicare & Medicaid Services (CMS) estimates that the 10 drugs selected for the first round of negotiation will save seniors an estimated $42.1 billion over the next decade, according to a CMS fact sheet released January 16, 2026. These savings will be shared between Medicare and beneficiaries.
Expanding Access to Affordable Insulin
The administration is expanding access to affordable insulin through the Inflation reduction Act’s $35 monthly cap for seniors enrolled in Medicare Part D. This cap,implemented in 2023,has already provided significant relief to millions of americans with diabetes.
Prior to the cap, the average out-of-pocket cost for insulin for Medicare beneficiaries was approximately $116 per month, according to a 2022 report by the Kaiser Family Foundation. The $35 cap represents a substantial reduction in expenses for those reliant on this life-saving medication.
Addressing Drug Price Increases
The administration is taking steps to address excessive drug price increases, including implementing provisions in the Inflation Reduction Act that require drug manufacturers to pay rebates to Medicare if they raise prices faster than inflation.
In 2024, drug manufacturers paid an estimated $1 billion in rebates due to price increases exceeding inflation, as reported by the Department of Health and Human Services (HHS) on January 16, 2026. These rebates are used to lower Part D premiums and cost-sharing for beneficiaries.
Promoting Competition and Innovation
The administration continues to promote competition in the pharmaceutical market to drive down prices and encourage innovation. This includes supporting the development and approval of generic and biosimilar drugs.
The Food and Drug Administration (FDA) approved a record number of generic drugs in 2025, with 972 approvals, according to FDA data released on January 15, 2026. Increased generic competition is a key factor in lowering drug costs for consumers.