Prescription Drug Law a Victory for All Americans

When the President signed the Inflation Reduction Act into law, it was a game changer for older Americans. Seniors will finally get some relief from out-of-control prescription drug prices and protection from mounting drug costs that can bankrupt families.

The stories we have heard from AARP members demonstrate how important lowering the high cost of drugs is to older Americans and their families. In calls, emails and letters, they’ve described how rising drug prices have devastated their household budgets, which are already squeezed by inflation. Some have been forced to choose between rent, groceries, gas and life-saving prescription drugs. That should never, ever happen. That’s why we made lowering the cost of prescription drugs our top priority.

When the President signed this legislation last month, he put an exclamation point on an effort that began some 60 years ago when AARP’s founder, Dr. Ethel Percy Andrus, first urged Congress to contain the soaring costs of prescription drugs.

This is an historic victory for all consumers. Drug companies have for decades raked in record profits by charging Americans three times what people in other countries pay for the same drugs. Now that will begin to change.

This new law requires Medicare, for the first time, to negotiate with drug companies for lower prices and penalizes those who raise their prices faster than inflation. The law will save hundreds of billions of dollars for seniors, taxpayers and Medicare. This is a common-sense approach that people across the political spectrum support. In fact, the only opposition for all these years has been from big drug companies.

What’s more, the law will provide peace of mind to older Americans and their families that the drugs they need to stay healthy – and, often to stay alive – won’t impoverish them. As a result of this law, beginning in 2025, people in Medicare drug plans will have their annual out-of-pocket drug costs capped at $2,000. And beginning in 2023, a new $35 monthly cap on insulin costs takes effect.

This is an historic victory for all consumers. Drug companies have for decades raked in record profits by charging Americans three times what people in other countries pay for the same drugs. Now that will begin to change. With the support of our nearly 38 million AARP members, we stood up to big drug companies — and we won!

While the big drug companies relied on their high-paid lobbyists, misleading advertising and enormous war chest, we relied on our members, volunteers and activists — what Dr. Andrus called our army of useful citizens — to make our leaders understand what outrageously high drug prices mean for so many who must choose between paying for the medicine they need and everyday expenses, like gas and groceries.

They flooded Congress with 4.5 million emails, 4.3 million petition signatures and 243,000 phone calls. And, together, we convinced Congress to listen to the voices and stories of millions of Americans who have been hurt by those high costs. Simply put, this victory would not have been possible without AARP members raising their voices and sharing their stories. They kept the issue of high drug prices on the national agenda, and as a result, all Americans will reap the benefits.

While we should all celebrate this historic victory, it’s no time to let our guard down. The big drug companies are already trying to overturn the new law so they can keep charging Americans the highest prices in the world — three times what people in other countries pay. They won’t stop and neither will AARP. We worked hard to win this victory, and we will now work just as hard to fiercely defend the benefits we have won.

Learn more about the health care components of the bill, and AARP's continued efforts in the fight for affordable prescription drugs at www.aarp.org/fiercedefender.