[Congressional Record Volume 170, Number 150 (Wednesday, September 25, 2024)]
[Senate]
[Page S6421]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
INFLATION REDUCTION ACT HEALTH PROVISIONS
Mr. CARDIN. Madam President, I rise today to highlight the critical
importance of the health provisions in the Inflation Reduction Act,
IRA.
Last week, the Senate Finance Committee held a hearing entitled,
``Lower Health Care Costs for Americans: Understanding the Benefits of
the Inflation Reduction Act.'' Since President Biden signed the IRA
into law on August 16, 2022, this landmark legislation continues to
make life easier for American families to afford health insurance
coverage and prescription drugs.
Across the board, costs are being lowered. Since January 2023, thanks
to the IRA, insulin for Medicare beneficiaries is capped at $35 a
month, and all recommended vaccines are available for seniors at no
cost. The IRA further lowers drug costs by capping out-of-pocket
Medicare part D beneficiaries' expenses at $2,000. And in 2026,
Medicare will begin implementing negotiated drug prices, starting with
10 of the highest cost prescription drugs.
Last month, the Biden-Harris administration took on Big Pharma and
succeeded in negotiating to lower prices for 10 of the most common and
expensive drugs under Medicare. Americans are expected to save $6
billion on prescription drug costs, and people enrolled in Medicare are
expected to save $1.5 billion in out-of-pocket costs in 2026 alone.
Early next year, the administration will announce 15 more drugs that
will be subject to price negotiations.
Prior to this historic piece of legislation, drug companies were
routinely charging Americans three times more than patients in other
countries for the same medication.
However, the Biden-Harris administration's announcement last month
ended this pattern by unveiling negotiated lower prices for some of the
most expensive, popular drugs taken to treat conditions including blood
clots, diabetes, cancer, heart failure, and rheumatoid arthritis. Every
day, millions of Americans are saving money on healthcare costs, thanks
to the Biden-Harris administration.
This was made possible because of the IRA, which passed thanks to my
Democratic colleagues in Congress and with Vice President Harris' tie-
breaking vote in the Senate. Every single Republican voted against it.
In 2021, the Biden-Harris administration was able to pass temporary
subsidies for low-income Americans as part of the American Rescue Plan
Act, ARPA. With the passage of the IRA a year later, these enhanced
premium tax credits (PTCs) were extended for an additional 3 years.
These PTCs have been a key driver of the record 21.4 million people
signing up for coverage under the ACA.
As things stand, the enhanced PTCs passed in the Inflation Reduction
Act will expire in 2025. We cannot let this happen. We know access to
affordable health insurance saves lives and reduces costs by enabling
people to access the care they need. If these enhanced PTCs are allowed
to expire next year, over 20 million Americans will see a sudden
increase in their health insurance costs. Additionally, an estimated 3
million Americans could lose their health insurance entirely.
Another policy included in the IRA to increase prescription drug
affordability is capping Medicare patients' out-of-pocket costs at
$3,000 in just a couple of months and $2,000 per year in 2025. This
policy will prevent Medicare beneficiaries from paying tens of
thousands of dollars to purchase lifesaving drugs prescribed by their
doctors.
Further, many vaccines are available with no beneficiary cost-sharing
under Medicare. Vaccines can be incredibly expensive. For example, the
shingles vaccine can cost up to $385 for seniors. In 2023, the Medicaid
and CHIP Payment and Access Commission (MACPAC) estimated that
vaccination rates for adults enrolled in Medicaid were lower than
adults with private health insurance coverage. Now, Medicare
beneficiaries can receive all adult vaccines recommended by the Centers
for Disease Prevention and Control's Advisory Committee on Immunization
Practices for free, including the shingles vaccine. That means no
copayment or other out-of-pocket costs.
Democrats voted for this, and the Biden-Harris administration made it
happen. Americans and Marylanders are struggling to pay for their
prescription medications, and it is long past time for Congress to
remedy this obstacle. Prescription drugs have been lifesaving for
millions, but if they are unaffordable, then their benefit is of no
significance.
No one should have to go into debt to buy the prescription drugs they
need to live a healthy, productive life, and yet, that is a dilemma
many families in the U.S. face. Twenty-nine percent of Americans either
cannot afford their prescription drugs or are rationing them. Too
often, groups in fair or poor health struggle the most to afford their
medications.
Opponents of addressing the high prescription drug prices, claim that
more affordable prices will come at the expense of innovation. I say,
and the research agrees, that is false. The U.S. Government ensures
there is access to innovative treatments and prescriptions. The best
example of this can be found in my home State of Maryland, the National
Institute of Health (NIH), which is the world's largest government
funder of biomedical research. Almost all drugs rely on NIH-supported
basic science. And the returns on these investments are very high.
Researchers from the Massachusetts Institute of Technology have found
that each $125 million NIH grant leads to $375 million more in private
market value, 33 more patents, and one new drug. Another study
estimated that the rate of return on NIH investment is 43 percent, and
that each dollar in NIH funding leads to an additional $8.40 in private
research and development (R&D) spending.
Despite these significant taxpayer investments, prescription drugs
are often priced at levels that limit access to lifesaving drugs,
particularly among those who are underinsured or uninsured. Even after
accounting for the cost and risk of R&D, evidence shows the returns to
new products exceed normal rates of return.
These drug manufacturers offer many important and lifesaving
medications that people need and deserve. Patients and the healthcare
system should not be price gouged or priced out, which is why the IRA
is so important for American families.
There is evidence that the IRA health provisions have reduced out-of-
pocket spending for millions of Americans. I urge all of my Senate
colleagues to join Democrats and the Biden-Harris administration to
ensure all of our constituents have access to affordable, lifesaving,
and life-sustaining prescription drugs. When it comes to these
essential medications, no one should have to choose between putting
food on their table and their health--or even their life.
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