Biden administration pushes pharmacies to tout drug cost benefits of IRA

Biden administration officials asked executives from major drug and retail chains to counter stiff opposition from the pharmaceutical industry and help promote a law intended to lower drug costs.

US health officials met Tuesday at the White House with leaders of CVS Health Corp., Walgreens Boots Alliance Inc. and Walmart Inc., seeking help to tout the benefits of the Inflation Reduction Act, a Health and Human Services Department spokesperson said. Along with capping insulin prices and expanding access to adult vaccines, the law will allow Medicare, the US health program for the elderly, to negotiate prices of costly drugs made by some of the biggest pharmaceutical companies. 

Gearing up for the 2024 election, the administration plans to tout the act as a hallmark of President Joe Biden’s efforts to cut spending on medications. The drug-price provisions have prompted a backlash from US drugmakers: Merck & Co., Bristol Myers Squibb Co., Johnson & Johnson and the industry’s biggest lobby group are all suing the government over the law, alleging it violates the Constitution. 

There was no discussion of the legal challenges at the meeting, the HHS spokesperson said. 

Neither the drugmakers nor the pharmacy chains responded to requests for comment.

In a letter sent to drug chains and pharmacy associations before the meeting, White House Domestic Policy Adviser Neera Tanden, Health and Human Services Secretary Xavier Becerra and Medicare Administrator Chiquita Brooks-LaSure asked the executives to educate patients about the law and who’s eligible for benefits. The companies were asked to message patients via social media and mention it on “pharmacy materials, like customer receipts and checkout kiosks.” 

Tanden, Becerra and Brooks-LaSure also asked for assistance promoting a program called Extra Help that lowers drug costs for low-income seniors and people with disabilities. The act increased the number of people eligible for the program. 

The Inflation Reduction Act gives Medicare the power to negotiate prices for a growing list of treatments starting in 2026. The change is expected to save almost $100 billion by 2031.

Officials also asked the chains to direct patients to fill out forms for Medicaid coverage renewal. At least 2.75 million Medicaid recipients were dropped from the program as of July 17, according to the Kaiser Family Foundation, which tracks the unwinding of pandemic-era health measures. 

The meeting was coordinated to precede the late-year launch of seasonal vaccination campaign in the US and the open enrollment period when Americans can adjust their health plans, the spokesperson said.

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