The Biden administration on Thursday unveiled new, lower prices for the first 10 prescription drugs to go through cost negotiations between Medicare and drug manufacturers, marking a watershed moment for President Joe Biden and one he noted he had been waiting for "a long, long time.” 

“I thank God that in the last months I’m president of the United States, I was able to finally get done what I’ve tried to get done as a young senator at 30 years old,” Biden said to close out his remarks at an event in Maryland on Thursday to celebrate the milestone. 

What You Need To Know

  • The Biden administration on Thursday unveiled new, lower prices for the first 10 prescription drugs to go through cost negotiations between Medicare and manufacturers
  • The move marks a watershed moment for President Joe Biden and one he noted he had been waiting on “for a long, long time"
  • The lower prices stems from Biden’s Inflation Reduction Act, passed by Democrats in Congress in 2022, which gave Medicare the power to negotiate prescription drug prices
  • The drugs included in the first round medications treating heart disease, diabetes, arthritis and more; the price reductions range from 38% to 79% less than the list prices of the drugs 
  • Although the speeches were given in their official capacities as president and vice president, Thursday’s event with Biden and Vice President Harris, who is the Democratic nominee for president, took on the energy of a campaign rally

The move stems from Biden’s Inflation Reduction Act, passed by Democrats in Congress in 2022, which gave Medicare the power to negotiate prescription drug prices. More than 65 million Americans, mostly seniors over 65 years old, are on the federal health insurance program. 

The drugs in the first round include medications treating heart disease, diabetes, arthritis and more. The price reductions range from 38% to 79% less than the list prices. 

According to estimates from the Centers for Medicare and Medicaid Services, the newly reduced prices are expected to save $1.5 billion in out-of-pocket costs for people on Medicare, and Medicare itself is expected to net $6 billion in savings in the first year of the new pricing, compared to 2023 prices. New prices are scheduled to take effect starting in 2026.

“For years, big Pharma blocked Medicare from negotiating lower drug prices, the consequence: they are able to maintain the exorbitant price increases and their profits are uncalled for,” Biden said on Thursday. “Look, but this time, we finally beat big Pharma.” 

Vice President Kamala Harris, the 2024 Democratic nominee for president, joined Biden at Thursday’s event in Prince George’s County, Md., marking the pair’s first remarks to a crowd together since the president dropped his reelection bid and endorsed Harris more than three weeks ago. 

Harris, who cast the tie-breaking vote in the Senate to get the Inflation Reduction Act over the finish line, declared on Thursday that she has worked her entire career “to hold bad actors accountable and lower the cost of prescription drugs.” 

“As attorney general of California, I took on pharmaceutical companies for deceptive marketing and illegally inflating the cost of drugs and we won billions of dollars,” she continued. 

Although the speeches were given in their official capacities as president and vice president, Thursday’s event took on the energy of a campaign rally with Biden declaring that Harris will make “one hell of a president.” Many in the crowd wore Harris campaign merchandise. 

Attendees also used the event as a chance to honor Biden’s years in public office as he prepares to leave office at the end of the year. Chants of “Thank you, Joe” broke out multiple times during the remarks. 

One Maryland resident in attendance on Thursday, Betty Crowley, told Spectrum News that the moment Biden dropped out and endorsed his vice president brought “a mixture of sadness and joy.” 

“Because I think that President Biden has done such a wonderful job,” she said. 

At the same time, Crowley said the prospect of watching Harris become president, would fufill a longtime goal.

“Since the early 60’s I’ve been involved in political campaigns and my wish – you know everybody has their wishes before they die – I wanted a woman president,” Crowley said. “And I think I’m gonna see one – I know I’m gonna see one.” 

Biden on Thursday also criticized Republicans for voting against the Inflation Reduction Act and said Project 2025 – the right-wing policy platform curated by a conservative think tank – wants to do away with Medicare’s newfound power to negotiate prices. 

“Let me tell you what our Project 2025 is: Beat the hell out of them,” Biden said on Thursday. 

Trump has sought to distance himself from the platform despite some of his allies and former staffers participating in its creation. 

Democrats are touting Thursday’s announcement as a key milestone in their bid to lower prices for Americans as Republicans slam them for their handling of the economy and inflation. Biden had pledged to make the lower prices available to all Americans, not just those on Medicare. 

Harris is set to unveil her broader economic agenda during a campaign rally in North Carolina on Friday. As part of the plan, she is expected to say that as president she would ban price gouging among corporations in the food and grocery industry.