Patients like David Mitchell see significant savings under the Inflation Reduction Act
Last year, David Mitchell paid a whopping $16,525 for just 12 bottles of the medication Pomalyst to treat his multiple myeloma. Outraged by the skyrocketing costs, Mitchell founded Patients for Affordable Drugs in 2016. Now, thanks to the 2022 Inflation Reduction Act, Mitchell and thousands of other Medicare beneficiaries are experiencing significant relief.
Immediate Relief and Long-Term Reform
Under the new law, Medicare beneficiaries are protected from exorbitant drug costs. Mitchell, for example, only had to pay $3,308 for a Pomalyst refill in January. According to the law, the out-of-pocket spending cap for brand-name drugs will be around $3,500 in 2024, dropping to $2,000 in 2023.
“From a selfish perspective, I feel great about it,” Mitchell said. “But the payment cap will be ‘truly life-changing’ for hundreds of thousands of other Medicare patients.”
Biden’s Battle Against High Drug Prices
President Joe Biden has made it his mission to combat high drug prices. The Inflation Reduction Act represents a major overhaul of the U.S. drug marketplace. The law not only provides immediate relief for Medicare patients but also aims to impose government controls on pharmaceutical pricing.
Awareness and Impact
Despite Biden’s efforts, a recent KFF poll shows that only a quarter of adults were aware of the provisions on drug prices in the Inflation Reduction Act. The law’s impact on pharmaceutical companies is uncertain, with some predicting a moderate effect on revenues. However, investors in the pharmaceutical industry remain optimistic about future growth.
The Path to Reasonable Drug Pricing
The Inflation Reduction Act is just one step in the journey toward reasonable drug prices. Bipartisan legislation and additional efforts by the Biden administration are anticipated to complement the law’s provisions. Transparency measures, self-serving behavior regulation for pharmacy benefit managers, and government intervention in unreasonably priced drugs created through NIH-funded research are all part of the plan.
Savings and Hope for Patients
For patients like Lynn Scarfuto, who spent over $1,000 on drugs last year, the Inflation Reduction Act brings much-needed relief. Scarfuto, a leukemia patient, will pay nothing for her medication this year. As more drugs become subject to negotiation, patients are hopeful for continued savings and access to life-saving treatments.
A Powerful Voice for Change
David Mitchell’s Patients for Affordable Drugs has been instrumental in advocating for change in Washington. Supported by grants from Arnold Ventures, the organization has given thousands of patients a platform to share their stories and lobby for legislative reform. Their efforts, along with the Inflation Reduction Act, are making a significant impact on drug pricing.
KFF Health News, an independent source for health policy research, polling, and journalism, has provided funding for this report.
