SANTA FE — U.S. Senator Ben Ray Luján (D-N.M.) issued the following statement on the Biden-Harris administration announcement of price negotiations to reduce the costs of medications for New Mexico seniors on Aug. 15:
“Congressional Democrats passed the Inflation Reduction Act two years ago this week, and it’s paying off and making a real difference in the lives of New Mexico families,” he said. “For years, I have pushed to allow for fair negotiations to lower prescription drug costs for seniors. This is finally happening.”
Congressional Democrats, who passed the Inflation Reduction Actin August 2022, applaud lower prices for all 10 drugs selected by the Biden-Harris administration for negotiation. These negotiated drugs are some of the most expensive and most frequently dispensed drugs in the Medicare program. The new prices will go into effect for people with Medicare Part D prescription drug coverage beginning Jan. 1, 2026.
This includes more than 46,000 Medicare enrollees in New Mexico who take one or more of the drugs covered by the price agreements, including more than 24,000 who take the cardiovascular drugs Eliquis or Xarelto to prevent blood clots, the more than 14,000 who take Jardiance, Januvia, or Farxiga for Type 2 Diabetes, and the more than 1,800 who take Entresto to treat heart failure or other cardiovascular conditions.
If the new prices had been in effect last year, Medicare would have saved an estimated $6 billion, or approximately 22%, across the 10 selected drugs. These negotiated prices range from 38 to 79% discounts off of list prices.
About nine million people with Medicare use at least one of the 10 drugs selected for negotiation. People with Medicare prescription drug coverage are expected to see aggregated estimated savings of $1.5 billion in 2026.
“Thousands of seniors in New Mexico will benefit from this landmark law and the leadership of the Biden-Harris administration and Congressional Democrats,” Luján said. “Today’s announcement amounts to lower costs and more money in New Mexicans’ pockets. But there’s still more work to do – and I remain committed to lowering costs for all New Mexican families.”
By Sen. Ben Ray Luján
