An estimated 25,000 Montana seniors will benefit from a pricing deal struck last week between the federal government and pharmaceutical companies. For the first time, the two parties negotiated directly to reduce maximum prices for 10 of the costliest and commonly used prescription drugs covered by Medicare.
Nationwide, the cost-savings agreement will slash list prices by 38 to 79%, according to the Centers for Medicare and Medicaid Services, which oversees the federal administration of the two health insurance programs. If these prices had been in effect last year, it said in a statement, Medicare would have saved an estimated $6 billion, or approximately 22%, on the drugs included in the deal.
These negotiations were required under the Inflation Reduction Act, a $500 billion legislative package signed by President Joe Biden in 2022 to invest in clean energy, reduce health care costs and increase tax revenues.
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The bill passed the Senate on party lines with Vice President Kamala Harris casting the tie-break vote. Montana’s three Republican members of the congressional federal delegation — Sen. Steve Daines, Rep. Ryan Zinke and Rep. Matt Rosendale — voted against the legislation. Democrat Jon Tester voted for it.
