While the the prescription drug plan in the Inflation Reduction Act focuses on changes to Medicare — capping the cost of insulin at $35 a vial and out-of-pocket expenses at $2,000 a year, and eliminating co-pays on vaccines — it also serves as a “shot across the bow” to the pharmaceutical industry, according to U.S. Rep. Elissa Slotkin, D-Lansing.
Calling the prescription drug plan President Joe Biden signed into law last year as part of his Inflation Reduction Act a “signal to the rest of prescription world,” Slotkin, founder and chair of the Congressional Domestic Pharmaceutical Caucus, said the days of companies charging whatever they want for medications and operating without transparency are coming to an end.
Slotkin was at the Michigan Medicine Brighton Center for Specialty Care on Chilson Road with Health and Human Services Secretary Xavier Becerra on Friday. The two met for closed-door conversations with hospital leaders, community advocates, and health professionals to discuss drug shortages, maternal health disparities, and other healthcare obstacles that they are working to address at the federal level.
After those meetings, they held a press conference to highlight the successes of the prescription drug plan.
“This is a historic day,” said Paula Cunningham of Michigan AARP. “Let’s not take this lightly. It’s taken us 20 years to get here.”
Cunningham said there were 4,766,237 emails sent to members of Congress; 4,256,194 petitions signed; and 24,500 “actual receipts” sent to Congress to illustrate how high prescription drug prices were.
Calling Slotkin a “warrior” on the issue, Cunningham said the prescription drug plan is a “monumental improvement” for older Americans.
Slotkin called the legislation a “no-brainer.”
“Almost every country in the world and the U.S. military negotiates with drug companies,” Slotkin said, likening it to the cost savings Costco achieves by buying products in bulk for better pricing to its customers. “It’s a huge change.”
Becerra said that in addition to lowering drug prices, the prescription drug plan also makes vaccines available to Medicare recipients with no out-of-pocket costs.
“As President Biden said, when it comes to health care, we’re going to lower the costs for more Americans,” he said.
The origins of Friday’s meeting began in May when Slotkin received calls about shortages in cancer drugs, including one from Henry Ford Hospital saying that it might have to cancel 600 treatments for cancer patients.
“That kicked off a conversation with the Michigan delegation,” Slotkin said. “A factory in India went down, and we have manufacturing issues.
“It’s important to have the secretary (Becerra) acting on our behalf,” Slotkin said, adding that he has shown “extreme responsiveness” by showing up to listen, just as he did Friday in Brighton.
“It’s important to come and see on the ground how things are working,” Becerra said. “And, boy, are they working.”
Another benefit of the prescription drug plan, Becerra said, is that the cost of drugs can’t raise any higher than the rate of inflation of the prior year.
As for mitigating shortages, Slotkin said the focus is on bringing supply chains home to the U.S., and Becerra said that a better distribution system is needed.
“Unlike water and electricity, our government does not regulate prescription medications to ensure essentials will always be there,” Becerra said.
Last month, Slotkin introduced legislation to expand supply of critical drugs during shortages. Slotkin has been a longtime advocate for strengthening supply chains for critical pharmaceuticals. She co-founded the Domestic Pharmaceutical Manufacturing Caucus, a working group in Congress focused on restoring America’s drug manufacturing industry in order to head off potential supply chain disruptions.
In December 2022, Slotkin’s Strengthening America’s Strategic National Stockpile Act, which would make improvements to America’s Strategic National Stockpile of medical supplies, was passed by Congress and signed into law.
Slotkin’s Real Time Benefits Act, signed into law by President Trump, went into effect earlier this year and enables people to compare drug prices at the pharmacy counter so they can be sure they’re getting the best deal.
“We’re starting with Medicare, but that’s not where we’re ending,” Slotkin said.
