Many drug prices lowered by 40 to 80 percent thanks to Democrats’ Inflation Reduction Act
Providence, RI – Ahead of the second anniversary of the Inflation Reduction Act, U.S. Senator Sheldon Whitehouse applauded the first round of negotiated prescription drug prices expected to save more than 29,000 Rhode Island seniors money starting in January 2026. The new pricing will save Medicare beneficiaries $1.5 billion in out-of-pocket costs and American taxpayers $6 billion in the first year of the program alone.
“Thanks to Democrats’ Inflation Reduction Act, Rhode Islanders living on fixed incomes can worry less about affording their prescription drugs,” said Whitehouse, who has long fought to allow Medicare to negotiate drug prices. “We’ve made major progress breaking the grip of Big Pharma to lower health care and prescription costs for seniors. These huge savings are very welcome news to Rhode Islanders on Medicare.”
Democrats’ historic Inflation Reduction Act allowed Medicare to negotiate drug prices for the first time ever. These new, lower prices cut the cost of some of the most expensive and most commonly used drugs by nearly 40 to 80 percent. The following price changes are set to take effect in January 2026:
More than 29,000 Medicare enrollees in Rhode Island rely on prescription drugs selected for negotiation. In the Ocean State, about 18,000 seniors take Eliquis or Xarelto to prevent blood clots; 7,900 take Type 2 Diabetes medications Jardiance, Januvia, or Farxiga; and around 1,100 take Entresto for cardiovascular conditions.
In addition to allowing Medicare to negotiate drug prices, the Inflation Reduction Act capped seniors’ monthly out-of-pocket insulin costs at $35, saving about 5,000 Rhode Islanders about $485 each year, and made many vaccines available to Rhode Islanders on Medicare at no cost. The law also protects Medicare beneficiaries from drug company price hikes that outpace inflation.
This year, the Inflation Reduction Act capped out-of-pocket costs for some Medicare Part D enrollees at approximately $3,500, resulting in about $11 million in total savings for 57,000 enrollees in Rhode Island. Those savings will continue to grow next year as other aspects of the law are phased in, including lowering the out-of-pocket cap on prescription drug costs for seniors with Medicare Part D to $2,000.
Over 230,000 Rhode Islanders are currently enrolled in Medicare.
