Federal Bill Would Lower Prescription Drug Costs For NJ Seniors: AARP

NEW JERSEY — The Inflation Reduction Act of 2022 has taken a big step forward, and if the federal bill becomes law, it would help put some money back into the pockets of older adults living in the Garden State, the AARP’s New Jersey chapter says.

The U.S. Senate narrowly passed the scaled-down version of President Joe Biden's "Build Back Better Act" on Sunday, setting up a vote in the House, which is expected this week. Both of New Jersey’s senators – Bob Menendez and Cory Booker – voted in its favor. Read More: Property Taxes, Drug Prices, Climate: 3 Ways Senate Package Impacts NJ

See the bill’s full text here. See the nonpartisan Congressional Budget Office analysis of the bill here.

According to AARP New Jersey, the bill includes several key provisions that would lower the prices of prescription drugs, giving “real relief” to seniors. On a national level, the group said it supported provisions in the bill that will:

• “Finally allow Medicare to negotiate the price of drugs”
• “Cap annual out-of-pocket prescription drug costs in Medicare Part D at $2,000”
• “Hold drug companies accountable when they increase drug prices faster than the rate of inflation”

Negotiations would take effect for 10 drugs covered by Medicare in 2026, increasing to 20 drugs in 2029, NPR reported.

An amendment that would have capped insulin at $35 per month failed. The amendment received a 57-43 vote but required 60 votes to waive special budgetary rules. Read More: NJ Families Bash 'Unethical' Insulin Prices, Plead For $35 Cap

Jo Ann Jenkins, AARP’s chief executive officer, issued a statement after the Senate vote:

“Since AARP’s founding, we have fought for older adults to have access to affordable health care – including prescription drugs. And we have been working for nearly two decades to allow Medicare to negotiate the price it pays for medications. Thanks to today’s historic vote in the Senate, millions of Americans 50+ are one step closer to real relief from out-of-control prescription drug prices. This bill will save Medicare hundreds of billions of dollars and give seniors peace of mind knowing there is an annual limit on what they must pay out-of-pocket for medications. Lowering prescription drug prices is a top priority for Americans, with more than 80% of people across political parties supporting the measure. We thank all the senators who voted today to lower drug prices. We are also pleased that the bill will keep health insurance affordable for millions of Americans who purchase their coverage in the marketplace, especially consumers aged 50-64 – more than one million of whom have gained more affordable options.”

“We urge the House to move quickly and enact this momentous reform,” Jenkins added.

• See related article: NJ Bill Would Create Board To Fight High Prescription Drug Costs

Sen. Booker spoke about the benefits for seniors in a statement about his vote.

"With commonsense reforms that will allow Medicare to negotiate prescription drug prices and cap out-of-pocket costs, we will protect seniors from outrageous prices charged by pharmaceutical companies for lifesaving medications," Booker said, adding that it also provides an additional three years of Affordable Care Act subsidies which will lower health care premiums for "millions of Americans."

"I am proud to have voted for it, and I urge the House to pass it swiftly," Booker said.

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