Finally, some relief to the exorbitant costs of prescription drugs, thanks to President Biden’s Inflation Reduction Act.
The IRA, along with its many other benefits, stops drugmakers from reaping excessive profits at the expense of seniors. It allows Medicare and Medicaid to negotiate prices for certain high-price drugs.
For example, Eliquis, also known as apixaban, a blood thinner taken by millions, currently costs on average around $600 a month, or $7,200 a year. Approved in 2012, its sales have grown by at least $1 billion each year since. According to Bristol Myers Squibb’s third-quarter financial report, Eliquis was its top revenue-generating drug so far in 2022. Haven’t they earned enough profits to lower the price? Although the Food and Drug Administration approved a generic version of Eliquis, Bristol Myers Squibb and Pfizer fought to restore their patent. A court ruling granted that extension, and now, a generic will not be available until April 2028. Another example: The IRA caps insulin at $35 a month under a Medicare Part D Plan, a lifeline for millions.
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One reason for the enormous drug prices in the U.S is the huge salaries paid executives. In 2022, 23 of the highest-paid biopharma CEO salaries ranged from $124.9 million to $18.5 million. U.S. drug prices are 256% higher than in 32 comparison countries.
Why are drug prices so much cheaper in Canada, Mexico and all other countries? Despite huge profits and salaries, the Pharmaceutical Research and Manufacturers of America has sued the federal government for helping seniors afford medications to keep them alive and healthier.
Many people are unaware that the federal government heavily funds research conducted by pharmaceutical companies. The National Institutes of Health contributed to 354 of 356 drugs, 99.4%, approved 2010-2019, totaling $187 billion, with no financial return on that investment for the government or us taxpayers.
Thanks, President Biden, for the IRA.