WASHINGTON (AP) — Taxpayers are expected to save billions after the Biden administration inked deals with pharmaceutical companies to knock down the lists prices for 10 of Medicare’s costliest drugs.
But how much older Americans can expect to save when they fill a prescription at their local pharmacy remains unclear, since the list cost isn't the final price people pay.
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WASHINGTON (AP) — Taxpayers are expected to save billions after the Biden administration inked deals with pharmaceutical companies to knock down the lists prices for 10 of Medicare’s costliest drugs.
President Joe Biden, left, listens as Democratic presidential nominee Vice President Kamala Harris speaks about the administration's efforts to lower prescription drug costs during an event at Prince George's Community College in Largo, Md., Thursday, Aug. 15, 2024. (AP Photo/Susan Walsh)
Attendees listen as President Joe Biden and Democratic presidential nominee Vice President Kamala Harris speak about the administration's efforts to lower prescription drug costs during an event at Prince George's Community College in Largo, Md., Thursday, Aug. 15, 2024. (AP Photo/Susan Walsh)
Democratic presidential nominee Vice President Kamala Harris, left, and President Joe Biden depart after speaking about the administration's efforts to lower prescription drug costs during an event at Prince George's Community College in Largo, Md., Thursday, Aug. 15, 2024. (AP Photo/Susan Walsh)
FILE - President Joe Biden leaves after speaking about prescription drug costs at the National Institutes of Health in Bethesda, Md., Dec. 14, 2023. (AP Photo/Andrew Harnik, File)
After months of negotiations with manufacturers, list prices will be reduced by hundreds — in some cases, thousands — of dollars for 30-day supplies of popular drugs used by millions of people on Medicare, including blood thinners, diabetes drugs and blood cancer medications. The reductions, which range between 38% and 79%, take effect in 2026.
“I've been waiting for this moment for a long long time," President Joe Biden said Thursday, during his first policy-oriented appearance with Vice President Kamala Harris since leaving the presidential race. “We pay more for prescription drugs, it’s not hyperbole, than any advanced nation in the world."
Taxpayers spend more than $50 billion yearly on the 10 drugs, which include popular blood thinners Xarelto and Eliquis and diabetes drugs Jardiance and Januvia.
With the new prices, the administration says savings are expected to total $6 billion for taxpayers and $1.5 billion overall for some of the 67 million people who rely on Medicare. Details on those calculations, however, have not been released. And the White House said it could not provide an average cost-savings for individual Medicare enrollees who use the drugs.
That's because there are a number of factors — from discounts to the coinsurance or copays for the person's Medicare drug plan — that determine the final price a person pays when they pick up their drugs at a pharmacy.
The new drug prices are likely to most benefit people who use one of the negotiated drugs and are enrolled in a Medicare plan with coinsurance that leaves enrollees to pay a percentage of a drug's cost after they've met the deductible, said Tricia Neuman, an executive director at the health policy research nonprofit KFF.
“It is hard to say, exactly, what any enrollee will save because it depends on their particular plan and their coinsurance,” Neuman said. “But for the many people who are in the plans that charge coinsurance, the lower negotiated price should translate directly to lower out-of-pocket costs.”
Those savings won't kick in until 2026. Until then, some Medicare enrollees should see relief from drug prices in a new rule starting next year that caps how much they pay annually on drugs to $2,000.
Vice President Kamala Harris, however, wasted no time Thursday campaigning on the new drug deals, especially since no Republicans supported the law, called the Inflation Reduction Act (IRA), and it barely passed Congress in 2022.
“Two years ago, as vice president, I was proud to cast the tie-breaking vote that gave Medicare the power to negotiate,” Harris said to cheering crowds. "In the two years since, we’ve been using this new power to lower the price of life-saving medication.”
Prior to dropping out of the race, Biden had centered his reelection bid around lowering health care and drug costs. But the messaging failed to resonate deeply with Americans, in part because the savings have not had widespread reach.
Powerful drug companies unsuccessfully tried to file lawsuits to stop the negotiations. For years, Medicare had been prohibited from such dealmaking. But the drug companies ended up engaging in the talks, and executives had hinted in recent weeks during earnings calls that they don't expect the new Medicare drug prices to impact their bottom line.
Instead, they warned Thursday that the new law could drive up prices for consumers in other areas. Already, the White House is bracing for a jump in Medicare drug plan premiums next year, in part because of changes under the new law.
“The administration is using the IRA’s price-setting scheme to drive political headlines, but patients will be disappointed when they find out what it means for them,” said Steve Ubl, the president of the lobbying group Pharmaceutical Research and Manufacturers of America (PhRMA).
The criticism is ironic, health law expert Rachel Sachs of Washington University said. Drug companies have typically supported capping the price older Americans pay for drugs because they don't eat the cost — insurers or Americans who pay premiums do.
“It makes it easier for patients to afford their medications. It expands their market. They make more money,” said Sachs, who helped advise the Biden administration on implementation of the law.
— Associated Press writer Tom Murphy in Indianapolis contributed.
Democratic presidential nominee Vice President Kamala Harris, left, and President Joe Biden depart after speaking about the administration's efforts to lower prescription drug costs during an event at Prince George's Community College in Largo, Md., Thursday, Aug. 15, 2024. (AP Photo/Susan Walsh)
President Joe Biden, left, listens as Democratic presidential nominee Vice President Kamala Harris speaks about the administration's efforts to lower prescription drug costs during an event at Prince George's Community College in Largo, Md., Thursday, Aug. 15, 2024. (AP Photo/Susan Walsh)
Attendees listen as President Joe Biden and Democratic presidential nominee Vice President Kamala Harris speak about the administration's efforts to lower prescription drug costs during an event at Prince George's Community College in Largo, Md., Thursday, Aug. 15, 2024. (AP Photo/Susan Walsh)
Democratic presidential nominee Vice President Kamala Harris, left, and President Joe Biden depart after speaking about the administration's efforts to lower prescription drug costs during an event at Prince George's Community College in Largo, Md., Thursday, Aug. 15, 2024. (AP Photo/Susan Walsh)
FILE - President Joe Biden leaves after speaking about prescription drug costs at the National Institutes of Health in Bethesda, Md., Dec. 14, 2023. (AP Photo/Andrew Harnik, File)
SINGAPORE (AP) — Pope Francis flew to Singapore on Wednesday for the final leg of his trip through Asia, arriving in one of the world’s richest countries from one of its poorest after a record-setting final Mass in East Timor.
After a brief farewell ceremony, Francis, the Vatican delegation and journalists traveling with him flew to Singapore aboard local carrier Aero Dili's only aircraft, an Airbus A320. It landed about three hours later in Singapore, where Francis had no public events scheduled for the rest of the day.
Francis wrapped up his visit to East Timor with a rally Wednesday morning of its young people, who make up the majority of the 1.3 million population. He urged them to work together to build their young country, using the foundations of older generations who formally secured their independence from Indonesia in 2002, to grow in peace, prosperity and reconciliation.
“Go forward with the happiness of youth, but don’t forget one thing,” Francis told them. “You are the heirs of those who persevered in founding this nation. For this, don’t lose your memory, the memory of those who persevered with so much sacrifice to consolidate this nation.”
The 87-year-old pope, who is on the longest and farthest trip of his pontificate, ditched his prepared remarks to speak off the cuff in his native Spanish, as he often does when he's around young people.
The joyous encounter came just hours after around 600,000 people — or nearly half the population — packed a seaside park for Francis’ Mass. It was held on the same field where St. John Paul II prayed 35 years ago, when East Timor was under brutally oppressive Indonesian rule.
Francis came to East Timor, also known as Timor-Leste, to encourage it more than two decades after it secured independence as it struggles with poverty and high unemployment.
In his final remarks at the end of the liturgy, Francis warned the Timorese today to beware of the “crocodiles” who come ashore and “want to change your culture, your history.”
It was an apparent reference both to East Timor’s past, as a colonial possession of first Portugal and then Indonesia, but also its current attractiveness to international commercial interests eager to develop its natural gas reserves.
The oil and gas industry is the bedrock of the Timorese economy and the main source of government revenue. Development of the promising offshore Greater Sunrise gas field, shared between Australia and East Timor, has been stalled for more than two decades — mainly over the question of which country the fuel should be piped to.
Timorese officials believe that piping gas into their country would deliver more benefits for their people despite the added logistical challenges. In an interview last week, President Jose Ramos-Horta said any alternative would have to be “a very persuasive proposal.”
Francis, who is from Argentina and is history’s first Latin American pope, has long railed against multinational companies that exploit poor countries for their natural resources for their own benefit without taking care to adequately compensate the local population or care for the environment.
“And don’t go near those crocodiles because they bite, and bite a lot, a lot,” Francis said Tuesday night, using a term in Spanish that means both “to bite” and to accept bribes.
The huge turnout in East Timor was a testament to the devout Catholic faith of its people and their reverence of the church, which strongly backed the Timorese’ fight for independence. Francis praised the Timorese for having not only built up their country from scratch, but reconciled with Indonesia after securing independence in 2002.
One of the Timorese who campaigned for that independence, Fransisco Dionisio Fernandes, was a 15-year-old acolyte at the Dili Mass celebrated by St. John Paul II on the same field as Francis.
He went on to become one of the most vocal pro-independence activists in East Timor, known locally by his nom de guerre Maukura. But he chose the path of nonviolent resistance rather than joining the guerrillas, preaching a message of reconciliation with Indonesia that Francis underscored during his visit.
“What’s past is past, every nation certainly has its dark history, and we cannot erase history,” Fernandes said in an interview. “East Timor has made a great effort to reconcile the wounds of the past and found a way to pursue a process of genuine reconciliation.”
Fernandes, who became a career diplomat, said the focus was now on the future.
“Now is the time for Timorese to fight for the development and people’s welfare. With the principle of mutual respect for each other’s sovereignty, we rebuild together with Indonesia which is destined to be brothers.”
East Timor remains one of the poorest in the world, with around 42% living below the poverty line. It struggles with high levels of unemployment and malnutrition. Nearly two-thirds of the country’s citizens are under 30 years old, making youth job creation a high priority.
From Dili, Francis was flying to Singapore, one of Asia’s economic powerhouses. The city-state’s transformation from a colonial port lacking natural resources into an economic power since its independence from Malaysia in 1965 has long been touted as a success story.
It enjoys one of the highest living standards in the world, and is known for its safety and low crime rate. But it is also one of the most expensive cities to live in and its competitive work environment makes for a stressful, overworked people.
Francis has no official program in Singapore on Wednesday other than a private meeting with his Jesuit confreres.
Niniek Karmini reported from Dili, East Timor. Eileen Ng contributed to this report from Kuala Lumpur, Malaysia.
Associated Press religion coverage receives support through the AP’s collaboration with The Conversation US, with funding from Lilly Endowment Inc. The AP is solely responsible for this content.
Pope Francis is welcomed by dancing children as he arrives at Singapore Changi International Airport, Wednesday, Sept. 11, 2024. Pope Francis is heading to Singapore for the final leg of his 11-day trip to Asia and Oceania. (AP Photo/Gregorio Borgia)
Pope Francis greets the volunteers on his arrival in Singapore, Wednesday, Sept. 11, 2024. (AP Photo/Vincent Thian)
Pope Francis travels in a buggy as he greets the volunteers on his arrival in Singapore, Wednesday, Sept. 11, 2024. (AP Photo/Vincent Thian)
Pope Francis is accompanied by East Timor's President Jose Ramos-Horta to abroad a plane to Singapore at Nicolau Lobato International Airport in Dili, East Timor, Wednesday, Sept. 11, 2024. (AP Photo/Dita Alangkara)
Pope Francis is accompanied by East Timor's President Jose Ramos-Horta to abroad a plane to Singapore at Nicolau Lobato International Airport in Dili, East Timor, Wednesday, Sept. 11, 2024. (AP Photo/Dita Alangkara)
Airport staff wave to Pope Francis at Nicolau Lobato International Airport in Dili, East Timor, Wednesday, Sept. 11, 2024. (AP Photo/Dita Alangkara)
Airport staff wave to an airplane which Pope Francis aboard at Nicolau Lobato International Airport in Dili, East Timor, Wednesday, Sept. 11, 2024. (AP Photo/Dita Alangkara)
Pope Francis is welcomed by dancing children as he arrives at Singapore Changi International Airport, Wednesday, Sept. 11, 2024. Pope Francis is heading to Singapore for the final leg of his 11-day trip to Asia and Oceania. (AP Photo/Gregorio Borgia)
Volunteers wait to greet Pope Francis on his arrival in Singapore, Wednesday, Sept. 11, 2024. (AP Photo/Vincent Thian)
People display a East Timor national flag to show it to Pope Francis taking off with his flight from Díli, East Timor and bound to Singapore, Wednesday, Sept. 11, 2024. The Vatican says some 600,000 people have attended Pope Francis' Mass in East Timor, or nearly half the country's population, on Tuesday on the same field where St. John Paul II prayed in 1989 during the nation's fight for independence from Indonesia. (AP Photo/Gregorio Borgia)
From left, Pope Francis is welcomed by Singapore's Minister of Culture, Community and Youth Edwin Tong and his wife (name not given) and the Ambassador of Singapore to the Holy See Ang Janet Guat Har as he arrives at Singapore Changi International Airport, Wednesday, Sept. 11, 2024. Pope Francis is heading to Singapore for the final leg of his 11-day trip to Asia and Oceania. (AP Photo/Gregorio Borgia)
Pope Francis greets before the meeting with young people in Centro de Convencoes in Dili, East Timor, Wednesday, Sept. 11, 2024. (AP Photo/Firdia Lisnawati)
Pope Francis is welcomed during the meeting with young people in Centro de Convencoes in Dili, East Timor, Wednesday, Sept. 11, 2024. (AP Photo/Firdia Lisnawati)
Pope Francis waves out of the car on the day of the Holy Mass at the Esplanade of Taci Tolu during his apostolic trip to Asia, in Dili, East Timor, Tuesday, Sept. 10, 2024. (Willy Kurniawan/Pool Photo via AP)
Pope Francis waves from the popemobile as he tours the crowd of faithful at the end of a mass at the seaside park of Tasitolu, 8 kilometers west of Dili, East Timor, Tuesday, Sept. 10, 2024. (Alessandro Di Meo/pool via AP)
Faithful in traditional dress singing and chanting on the side of the road outside the airport as they prepare to bid farewell to Pope Francis in Dili, East Timor, Wednesday, Sept. 11, 2024. (AP Photo/Dita Alangkara)
Faithful in traditional dress singing and chanting on the side of the road outside the airport as they prepare to bid farewell to Pope Francis in Dili, East Timor, Wednesday, Sept. 11, 2024. (AP Photo/Dita Alangkara)
Faithful in traditional dress singing and chanting on the side of the road outside the airport as they prepare to bid farewell to Pope Francis in Dili, East Timor, Wednesday, Sept. 11, 2024. (AP Photo/Dita Alangkara)
Men and women in traditional dress singing and chanting on the side of the road outside the airport as they prepare to bid farewell to Pope Francis in Dili, East Timor, Wednesday, Sept. 11, 2024. (AP Photo/Dita Alangkara)
Faithful in traditional dress singing and chanting on the side of the road outside the airport as they prepare to bid farewell to Pope Francis in Dili, East Timor, Wednesday, Sept. 11, 2024. (AP Photo/Dita Alangkara)
People wait for Pope Francis outside the Centro de Convenções in Díli, East Timor, Wednesday, Sept. 11, 2024, ahead of a meeting with young people. The Vatican says some 600,000 people have attended Pope Francis' Mass in East Timor, or nearly half the country's population, on Tuesday on the same field where St. John Paul II prayed in 1989 during the nation's fight for independence from Indonesia. (AP Photo/Gregorio Borgia)
People wait for Pope Francis outside the Centro de Convenções in Díli, East Timor, Wednesday, Sept. 11, 2024, ahead of a meeting with young people. The Vatican says some 600,000 people have attended Pope Francis' Mass in East Timor, or nearly half the country's population, on Tuesday on the same field where St. John Paul II prayed in 1989 during the nation's fight for independence from Indonesia. (AP Photo/Gregorio Borgia)
Students singi and chant on the side of the road outside the airport as they prepare to bid farewell to Pope Francis in Dili, East Timor, Wednesday, Sept. 11, 2024. (AP Photo/Dita Alangkara)
Pope Francis looks at traditional dancers as he arrives at the Centro de Convenções in Díli, East Timor, Wednesday, Sept. 11, 2024, for a meeting with young people. The Vatican says some 600,000 people have attended Pope Francis' Mass in East Timor, or nearly half the country's population, on Tuesday on the same field where St. John Paul II prayed in 1989 during the nation's fight for independence from Indonesia. (AP Photo/Gregorio Borgia)
Pope Francis looks at traditional dancers as he arrives at the Centro de Convenções in Díli, East Timor, Wednesday, Sept. 11, 2024, for a meeting with young people. The Vatican says some 600,000 people have attended Pope Francis' Mass in East Timor, or nearly half the country's population, on Tuesday on the same field where St. John Paul II prayed in 1989 during the nation's fight for independence from Indonesia. (AP Photo/Gregorio Borgia)
Pope Francis looks at traditional dancers as he arrives at the Centro de Convenções in Díli, East Timor, Wednesday, Sept. 11, 2024, for a meeting with young people. The Vatican says some 600,000 people have attended Pope Francis' Mass in East Timor, or nearly half the country's population, on Tuesday on the same field where St. John Paul II prayed in 1989 during the nation's fight for independence from Indonesia. (AP Photo/Gregorio Borgia)
Pope Francis looks at traditional dancers as he arrives at the Centro de Convenções in Díli, East Timor, Wednesday, Sept. 11, 2024, for a meeting with young people. The Vatican says some 600,000 people have attended Pope Francis' Mass in East Timor, or nearly half the country's population, on Tuesday on the same field where St. John Paul II prayed in 1989 during the nation's fight for independence from Indonesia. (AP Photo/Gregorio Borgia)
Pope Francis is welcomed as he arrives at the Centro de Convenções in Díli, East Timor, Wednesday, Sept. 11, 2024, for a meeting with young people. The Vatican says some 600,000 people have attended Pope Francis' Mass in East Timor, or nearly half the country's population, on Tuesday on the same field where St. John Paul II prayed in 1989 during the nation's fight for independence from Indonesia. (AP Photo/Gregorio Borgia)
Pope Francis wears an East Timor traditional Tais scarf he received upon his arrival at the Centro de Convenções in Díli, East Timor for a meeting with young people, Wednesday, Sept. 11, 2024. Tais are usually made for ceremonial use, along with feathers, coral, gold and silver. It has the symbolic meaning of respect towards guests, friends, relatives and ancestors. (AP Photo/Gregorio Borgia)
Pope Francis looks at traditional dancers as he arrives at the Centro de Convenções in Díli, East Timor, Wednesday, Sept. 11, 2024, for a meeting with young people. The Vatican says some 600,000 people have attended Pope Francis' Mass in East Timor, or nearly half the country's population, on Tuesday on the same field where St. John Paul II prayed in 1989 during the nation's fight for independence from Indonesia. (AP Photo/Gregorio Borgia)
Pope Francis is welcomed as he arrives at the Centro de Convenções in Díli, East Timor, Wednesday, Sept. 11, 2024, for a meeting with young people. The Vatican says some 600,000 people have attended Pope Francis' Mass in East Timor, or nearly half the country's population, on Tuesday on the same field where St. John Paul II prayed in 1989 during the nation's fight for independence from Indonesia. (AP Photo/Gregorio Borgia)
