NEWS FROM A DEMOCRATIC VIEWPOINT 9-13-23

Submitted by Deirdre Purdy

The IRA, Seniors & Drugs: What We Don’t Know Can Hurt Us

The Inflation Reduction Act (IRA) was passed by Democrats alone. No Republicans voted for
it. President Biden signed it into law on August 16, 2022. Democrats are celebrating the one-
year anniversary.

Yet, a Gallup poll last week found that more than 80% of Americans over the age of 55 believe
the IRA has not directly helped them. They believe the bill is a failure and want to know why
Democrats are celebrating.

According to Gallup, the first objection is that prices for food and drugs have gone up so the bill
didn’t reduce inflation. In fact, inflation has been reduced. The US inflation rate is now 3.2%.
A year ago it was 8.52%. Inflation has been reduced a lot, prices are rising more slowly and
some are coming down.

But the IRA did much more than reduce inflation. One big thing is improved senior health care.
Starting January 1, insulin copays are capped at $35 for more than 3 million people on Medicare.
Even people not on Medicare will benefit. Seeing the writing on the wall, after the bill passed,
three major insulin manufacturers then slashed their prices to meet the $35 cap.

Both the VA and Medicaid negotiate drug prices, but Medicare couldn’t – until now. When
Medicare Part D (drug coverage) was introduced in 2003, Republicans on behalf of Big Pharma,
refused to allow Medicare to negotiate the prices of drugs it would supply. They wanted the big
profits.

As a result, VA prices on 203 generic drugs were 68% lower than the same drugs for Medicare
patients.

One in 5 seniors say they skip doses of their drugs because of the cost of medication.
Big Pharma companies argued that lower drug prices would just hurt seniors in the long run
because it would take away funds for innovative research to save lives.

Turns out that isn’t true. Drug companies spend 19 times more on marketing than on research
and development. Those ads – “Ask Your Doctor if You Need More Drugs” – they don’t come
cheap.

There are currently 1,834 registered lobbyists working for pharmaceutical and health products.
Big Pharma has more than three lobbyists for each member of Congress. Lobbyists aren’t cheap.
Starting this year, thanks to the IRA, Medicare is negotiating prices of 10 common drugs that
treat blood clots, diabetes, heart disease and chronic kidney disease. The reduced prices go into
effect in January 2026. Each year 10, and then 15 more drug prices will be lowered. After 2028,
20 more drug prices will be lowered every year.

In 2022, just one of these drugs could cost seniors up to $6,497 in out-of-pocket expenses for one
year.

84% of Americans support Medicare negotiating drug prices.
Even the AARP, not usually a cheerleader for government actions, said this is “monumental.”
The IRA also invests $64 billion in subsidies for the Affordable Care Act to keep insurance costs
stable.

Another IRA benefit: starting in 2025, seniors with Medicare’s Part D drug plans will have their
out-of-pocket expenses for prescriptions capped at $2,000 per year. 

And still another change for the better: Last summer, the FDA approved over-the-counter sales
of hearing aids, making them more affordable and easily available. The use of hearing aids can
lower the risk of dementia by almost half, a recent study showed.

Republicans in Congress have promised to repeal the IRA. Now that you know these personal
benefits for you or your grandparents, do you really want to vote for a Republican for Congress,
who has vowed to take these benefits away?

• Deirdre Purdy