President Biden is set to address Congress in his State of the Union speech, where he will focus on cost-saving ideas for prescription drugs. The President plans to propose capping out-of-pocket prescription drug costs for all Americans and allowing the federal government to negotiate the prices of widely used medications. These proposals build on the actions taken in the 2022 Inflation Reduction Act, which allowed Medicare to negotiate the price of 20 expensive drugs used for conditions such as diabetes, arthritis, and heart disease. The federal government is currently in negotiations with pharmaceutical companies on the prices of these drugs, with plans to expand the number to 50 drugs that treat cancer, heart disease, and diabetes.
In his speech, President Biden is expected to call on Congress to extend the $2,000 cap on out-of-pocket prescription drug costs, currently set to go into effect for senior citizens in 2025, to all Americans with private insurance. These ideas will require significant congressional action, especially as Congress struggles with passing an annual budget and remains narrowly divided. The President is likely to call for bipartisanship to expand these health care savings, with the Biden White House emphasizing that no Republicans voted for the 2022 measure.
The administration has not provided a timeline for when the additional drug savings costs could be implemented if passed by Congress. As the 2024 presidential election approaches, these announcements are part of President Biden’s strategy to address voter concerns about the economy and his economic agenda. Recent polls have shown that more Americans view the economy more positively under former President Donald Trump than under President Biden, with a majority describing the current economy as bad. The Biden White House sees bringing down the cost of health care as a signature issue to tackle these economic concerns.
In addition to prescription drug cost-saving measures, the President is expected to highlight his administration’s work on addressing surprise costly medical bills from out-of-network providers and expanding health insurance through the Affordable Care Act. These efforts align with the Biden administration’s broader goal of improving access to affordable health care for all Americans. By focusing on health care affordability and cost-saving initiatives in his State of the Union address, President Biden aims to demonstrate his commitment to addressing economic concerns and improving the overall well-being of the American people.
Overall, President Biden’s proposals to cap out-of-pocket prescription drug costs and allow the federal government to negotiate drug prices reflect his administration’s efforts to make health care more affordable and accessible. These initiatives, if enacted by Congress, have the potential to benefit millions of Americans by reducing the financial burden of prescription medications. As the President prepares to address Congress, he will outline his vision for improving the health care system and addressing economic challenges facing the country.
