The Biden administration unveiled a plan to lower prescription drug prices for Medicare recipients on Thursday that would include backing a proposal in Congress that enables the federal government to directly negotiate with pharmaceutical companies and then passing those rates on to the private sector.
'High drug prices result in access and affordability challenges for many Americans. Twenty-four percent of adults taking prescription drugs say they are hard to afford, and nearly 10 percent of adults report not taking medication as prescribed in order to save money. Some have died as a result,' the plan's introduction reads.
More than 61.2 million Americans are covered by Medicare, according to the Centers for Medicare and Medicaid Services. That includes people over the age of 65 and younger people with disabilities.
Biden officials have long promised to tackle the issue of rising drug prices as part of the president's Build Back Better agenda.
The new plan led by Health and Human Services Secretary Xavier Becerra (right) makes good President Biden's campaign promise to tackle surging prescription drug costs
In the plan released Thursday by the Health and Human Services Department, the Biden administration details executive actions it could take including testing Medicare drug pricing based on the clinical value the drug would provide to patients and federal funding for research into new treatments.
The plan also details guidance for federal agencies and departments that would be affected by the measure going into effect.
Other 'administrative levers' in President Biden's plan include collecting data from insurers to improve transparency on prices and out-of-pocket spending, and helping the Food and Drug Administration break barriers and make it easier for generic drug alternatives to enter the market.
HHS's report includes 'three guiding principles' for reforming drug prices.
In addition to improving price equity throughout the health care system, the department is also looking to improve competition in the pharmaceuticals industry and support public and private research fueling innovation.
It also backs Congressional legislation introduced by Democrats that Biden first urged lawmakers to act on in August.
Americans pay more for prescription drugs than people in any other country in the world
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