PURPOSELY WROTE REALLY BAD
LEGISLATION, WHICH I DON'T THINK
WAS ANYONE'S INTENTION.
>> TEN LIFE-SAVING PRESCRIPTION
DRUGS COULD SOON COST LESS FOR
ANYONE ENROLLED IN MEDICARE PART
D, ROUGHLY 1.1 WISCONSINITES.
THE FIRST TREAT BLOOD CLOTS,
DIABETES, HEART FAILURE, CHRONIC
KIDNEY DISEASE, BLOOD CANCERS
AND MORE.
ADDITIONAL DRUGS TO BE
NEGOTIATED ARE EXPECTED.
THE ACTION STEMS FROM PART OF
THE INFLATION REDUCTION ACT,
WHICH WILL ALLOW THE FEDERAL
GOVERNMENT TO NEGOTIATE PRICES
WITH MANUFACTURERS FOR THE FIRST
TIME.
MEDICARE CURRENTLY SPENDS
$135 BILLION ON PRESCRIPTION
DRUGS ANNUALLY.
THE SAVINGS WILL ALLOW IT TO
SHORE UP FINANCES ACCORDING TO
THE AARP AND EVENTUALLY LEAD TO
LOWER PART D PREMIUMS.
FOR MORE WE ARE JOINED BY AARP
WISCONSIN DIRECTOR OF ADVOCACY,
M
MARTIN HERNANDEZ.
>> THANK YOU FOR HAVING ME.
>> HOW MEANINGFUL THAT THE
GOVERNMENT CNEGOTIATE DRUG
PRICES?
>> WE KNOW AMERICANS HAVE SOME
IF NOT THE HIGHEST DRUG PRICES
IN THE WORLD.
BEING ABLE TO NEGOTIATE FOR THE
FIRST TEN DRUG S IS A HISTORIC
FIRST STEP REALLY FOR ALL
AMERICANS BUT ESPECIALLY HOLDER
AMERICANS, WHO WE ALREADY KNOW
ARE ON A FIXED INCOME IN MANY
CASES.
AND A LOT OF TIMES THEY ARE THE
ONES TAKING THE MAJORITY OF
THESE PRESCRIPTION DRUGS.
>> HOW MUCH COULD THIS HELP
LOWER OUT-OF-POCKET CO- S FOR
SENIORS?
>> WE ARE LOOKING FOR REDUCTION
IN TENS OF MILLIONS WHEN WE LOOK
AT THE TOTAL SAVINGS.
NOT JUST FOR THESE TEN DRUGS BUT
ADDITIONAL ONES THAT WILL GET
ADDED ON TO THIS PLAN IN THE
FUTURE.
>> BECAUSE THESE DRUGS ARE THE
KINDS OF DRUGS THAT MANY, MANY
SENIORS TAKE FOR THINGS, AS WE
DESCRIBED, LIKE BLOOD CLOTS AND
HEART DISEASE AND THAT KIND OF
THING.
SO THEY CHOOSE THESE DRUGS IN
PARTICULAR?
>> THEY REACHED OUT.
THERE WAS A LOT OF PUBLIC
HEARING SESSIONS DONE IN ORDER
TO DETERMINE WHICH WERE THE TEN
DRUGS INCLUDED ON THIS FIRST
BATCH.
THAT WILL CONTINUE HAPPENING AS
THEY ADD MORE AND MORE DRUGS.
THERE WILL BE 15 MORE ADDED IN
2027, HOPEFULLY, WITH ANOTHER 20
ADDED TO THE NEGOTIATION BY
2029, GETTING US UP TO POTENTIAL
60 COVERED BY THIS NEGOTIATION
PROCESS.
>> THE WHITE HOUSE FACT SHEET
SAID ENROLL LEES AVERAGE
OUT-OF-POCKET WERE NAERL 6,$500
PER ENROLL LEE LAST YEAR.
WHAT HAPPENS TO PEOPLE WHO
SIMPLY CANNOT AFFORD THAT?
>> WELL, THE UNFORTUNATE
CIRCUMSTANCE THAT HAPPENS IS,
MANY SENIORS EITHER WILL GO
WITHOUT THEIR PRESCRIPTION OR
THEY WILL RATION IT OUT, WHERE
THEY MIGHT TAKE HALF A PILL WHEN
SHOULD BE TAKING A FULL DOSE FOR
THAT DAY.
OBVIOUSLY WE KNOW THAT HAS MANY
DETRIMENTAL AFFECTS TO THEIR
HEALTH.
>> IT SEEMS COUNTER-INTUITIVE
THAT SENIORS, MANY ON FIXED
INCOMES, HAVE TO PAY THAT KIND
OF MONEY FOR PRESCRIPTION DRUGS.
WHAT HAS BEEN THE REACTION FROM
YOUR MEMBERS TO THIS?
>> I THINK THIS WAS AN EXCITING
FIRST STEP.
MANY OF THEM KNOW EXACTLY HOW
MUCH OF AN EFFECT THIS WILL HAVE
ON THEIR POCKETBOOK AND THEY ARE
EXCITED TO CONTINUE THE FIGHT TO
BRING MORE AND MORE DRUGS INTO
THE PRICE NEGOTIATED SCALE.
>> SO THE NEGOTIATED PRICES
DON'T JUST HELP CONSUMERS ON
PRESCRIPTIONS.
IT REPRESENTS SAVINGS FOR THE
MEDICARE PROGRAM ITSELF.
COULD THAT LEAD TO LOWER
PREMIUM S?
>> THAT IS THE HOPE.
IS THAT AS WE BRING THE COST OF
MEDICARE DOWN, THAT IT LEADS TO
LOWER COSTS OVERALL IN ALL
SECTORS OF THE HEALTH CARE
FIELD.
>> GIVEN THAT THE NUMBER OF --
THE DEMOGRAPHICS ARE SUCH THAT
THE OLDER POPULATION IS GROWING.
THERE'S ALWAYS DISCUSSION ABOUT
MEDICARE AND SOCIAL SECURITY.
IF THE NEGOTIATED DRUG PRICES
KIND OF SHORE UP MEDICARE, WOULD
YOU IMAGINE THAT THEY WOULD
ACTUALLY LOWER THE PREMIUMS, OR
WOULD THEY JUST KIND OF USE IT
TO MAINTAIN THE MEDICARE PROGRAM
ITSELF?
>> I THINK THAT IS GOING TO BE
THE NEXT BIG CONVERSATION WE
HAVE.
THAT'S THE WORK WE ARE DOING, IS
GETTING FOLKS ACTIVE IN THEIR
POLITICAL PROCESS SO WHEN THAT
DECISION COMES, WE CAN HAVE AN
ACTIVE VOICE AT THE TABLE.
>> YOU KNOW, IT HAS ALWAYS
STRUCK ME THAT A LOT OF PEOPLE
THINK THAT SENIORS ON FIX T
INCOMES, THEY DON'T HAVE TO PAY
FOR MEDICARE.
AND THEY DON'T HAVE TO PAY FOR
THEIR PRESCRIPTION DRUGS.
BUT ACTUALLY THOSE PREMIUMS ARE
QUITE HIGH, GIVEN MANY SENIOR'S
INCOMES.
>> NO, NO.
ESPECIALLY ONE OF THE DRUGS
ANNOUNCED AS PART OF THE
PROGRAM, JENUVIA, USED TO TREAT
DIABETES, THE PRICE HAS GONE UP
LIKE 275% SINCE INTRODUCED IN
2006.
WE HAVE 11,000 WISCONSINITES ON
MEDICARE WHO TAKE THAT DRUG.
SO HAVING THAT PRICE COME DOWN
ANY AMOUNT IS GOING TO MAKE A
BIG IMPACT FOR THOSE 11,000
WISCONSIN RESIDENTS.
>> ABSOLUTELY.
YET PEOPLE SHOULD NOT EXPECT
THIS TO GO INTO AFFECT UNTIL
2026.
>> 2026 IS THE GOAL.
THERE ARE UNFORTUNATELY LAWSUITS
BY THE DRUG MANUFACTURERS.
THE HOPE IS IT DOESN'T DELAY
IMPLEMENTATION.
IT'S BEEN LONG COMING, THIS
RELIEF FOR ALL AMERICANS.
ESPECIALLY OLDER AMERICANS.
AND OUR HOPE IS THAT COME 2026
WE CAN START ROLLING OUT THE
PLAN THEN ADDING ADDITIONAL
DRUGS.
>> SO THERE ARE LAWSUITS ON THE
PART OF DRUG MAKERS OVER THESE
NEGOTIATING THESE PRICES.
BUT COULDN'T THE FEDERAL
GOVERNMENT SAY, WELL FINE, YOU
DON'T WANT TO DO THIS THEN YOU
ARE NOT GOING TO HAVE -- YOU
KNOW, YOU CAN'T BE PART OF THE
MEDICARE PROGRAM.
>> THAT IS ONE OPTION THEY HAVE.
WE ARE HOPING THAT IT DOESN'T
HAVE TO COME TO THAT MUCH OF A
HEAD-OFF.
THE DRUG MANUFACTURERS CAN STILL
MAKE A HEALTHY PROFIT.
THAT IS OUR STANCE IS THAT EVEN
WITH THESE NEGOTIATED PRICES,
THEY CAN STILL MAKE A HEALTHY
PROFIT, INNOVATE ON NEW DRUGS
WHILE STILL PROVIDING AGAIN THAT
LOWER COST FOR CONSUMERS.
>> IT IS TRUE THAT THE COST OF
INSULIN HAS BEEN CAPPED.
WHAT IS THAT LIKE FOR YOUR
MEMBER S?
>> THAT WAS A BIG FIRST STEP.
CAPPING INSULIN.
NOW IT IS CAPPED AT $35 A MONTH
FOR FOLKS ON MEDICARE PART B.
AARP IS SUPPORTIVE OF EXPANDING
THAT TO ALL AMERICAN, ALLOW
EVERYONE TO ACCESS TO THAT $35 A
MONTH CAP ON INSULIN.
>> WHAT WAS IT?
WHAT WERE PEOPLE HAVING TO PAY?
>> THEY WERE PAYING UPWARDS
THREE, FOUR TIMES THE AMOUNT TO
ACCESS INSULIN.
>> OBVIOUSLY THAT IS A
LIFE-SAVING DRUG.
>> IT IS A LIFE-SAVING DRUG AND
ONE YOU CAN'T GO WITHOUT.
FOR ME THAT IS THE MOST
IMPORTANT PART.
MANY OF THE PRESCRIPTIONS ARE
THE TYPES YOU GO ON AND HAVE TO
STAY ON IN ORDER TO MAINTAIN A
HEALTHY LIFESTYLE.
IT IS NOT SOMETHING SOMEONE CAN
TAKE AND, AGAIN, EITHER TAKE
LESS OR RATION OUT THEIR
PRESCRIPTION.
>> MARTIN HERNANDEZ, THANKS VERY
MUCH.
>> THANK YOU.
>> FOR MORE ON THIS AND OTHER