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Historic Law Lowers Prescription Drug Prices for Seniors, Makes Corporations Pay Fair Share in Taxes

By August 16, 2022No Comments

WASHINGTON – In response to President Biden signing the Inflation Reduction Act into law today, Health Care for America Now Executive Director Margarida Jorge released the following statement:

“The Inflation Reduction Act (IRA) delivers on years of promises to lower prescription drug prices for millions of seniors and disabled people while ensuring corporations finally pay their fair share in taxes. Thanks to the tireless efforts of advocates across the country and key negotiations by Democrats in Congress, this historic law will finally give Medicare the power to negotiate prescription drug prices and will provide longer-term support for those who gained health coverage through American Rescue Plan subsidies.

“This bill will make a big difference in the lives of millions of Medicare beneficiaries who have been held hostage by greedy pharmaceutical corporations that have enjoyed record profits on the backs of everyday Americans for decades. Today, prescription medications in the United States cost on average twice as much as those in peer counties, and the price of close to half of all Medicare prescriptions rose faster than the rate of inflation. By allowing Medicare to begin negotiating the price of certain drugs, capping out-of-pocket costs for seniors, extending Affordable Care Act premium supports and stopping drug makers from consistently hiking up prices, millions of Americans will benefit from more affordable medicines and access to critical health care services.

“The IRA also raises over $700 billion in government revenue over the next 10 years by finally implementing a 15% corporate minimum tax and 1% tax on stock buybacks. In addition to critical investments in clean energy and health care subsidies, this law will also reduce the deficit by $300 billion.

“We celebrate this historic win, which delivers on many long-standing promises. Despite uniform opposition from Republicans, this legislation will have lasting positive effects on the environment, economy and the health and budgets of millions across the country.”