Doug Hart, a retiree in Tempe, Arizona, is one of over 3 million Americans who regularly visits his local pharmacy to obtain his blood thinner medication. Like many of his peers on fixed incomes, he hopes for a future where necessary prescriptions are more affordable.
“The pharmaceutical industry charges $6.61 per pill in the United States. That exact same pill in Canada is $1.61 — $5 less per pill. Why? Canada negotiates drug prices,” Hart stated. “We don’t because the pharmaceutical industry says it’s illegal to do so. So they can charge whatever they want.”
Understanding Drug Pricing
In the United States, the cost of Eliquis, a blood thinner prescribed to Hart, exceeds $7,000 per year. This starkly contrasts with prices in countries like Canada and France, where the same medication costs $900 and $650, respectively. The absence of government involvement in price negotiations allows private companies to set higher prices, maximizing their profits.
“For millions of people, they can’t afford the drugs. They often have to ration them,” Hart commented. “They have to cut back on food and other things. Most of us have worked all of our lives, contributed to Medicare out of our paychecks all of our lives. But yet, we thought we would have health coverage, and we really don’t have the coverage we need.”
Recently, changes have been introduced that may alleviate these costs. The 2022 Inflation Reduction Act, signed by President Joe Biden, includes a phased introduction of Medicare price negotiations for the ten most commonly prescribed drugs starting in 2026. This policy aims to significantly reduce drug prices.
Furthermore, the act implements a cap of $2,000 on annual out-of-pocket prescription drug expenses for Medicare beneficiaries beginning in 2025.
Impact of Project 2025
However, a proposal known as Project 2025 threatens to reverse these cost-saving measures. The outcome depends on the administration following President Biden. Former President Donald Trump, while distancing himself from Project 2025, supports many of its recommendations, including repealing the Inflation Reduction Act. This repeal would halt drug price negotiations and remove the $2,000 cap for Medicare recipients.
In Arizona, this repeal could end cost-saving measures for over 400,000 seniors, potentially delivering approximately $150 million in additional profits to pharmaceutical companies, as reported by the US House Committee on the Budget. Nationally, the Center for American Progress estimates that these extra profits could reach nearly $8 billion, affecting over 20 million seniors.
Political Stances on Healthcare Costs
Vice President Kamala Harris, the Democratic presidential nominee, has consistently advocated for reducing prescription drug costs. During her 2019 campaign, Harris proposed a plan for the Health and Human Services Department to set maximum drug prices comparable to those in other countries. A 2022 study by the non-profit KFF highlights that Americans pay more than double for medications compared to other nations.
State-Level Initiatives
Arizona Governor Katie Hobbs announced a state-level plan in January to cap prescription costs and prevent price hikes. “My proposal will also help safeguard taxpayer dollars by preventing pharmacy benefit managers from overcharging Medicaid through a practice commonly known as spread-pricing,” Hobbs stated. However, despite efforts to introduce similar cost-saving measures as the federal law, the proposal was not considered in the Republican-controlled Senate.
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