Biden and Harris celebrate landmark deal to lower medication prices

Joe Biden and Kamala Harris on Thursday cast themselves as the champions of American seniors in a David-and-Goliath fight against big pharmaceutical companies, at a joint event touting a landmark deal to lower the cost of prescription drugs.

The event, which came after a morning announcement about new lower drug prices for beneficiaries of Medicare, a government health insurance plan for seniors, was an opportunity to persuade voters that their administration has helped ease costs after years of high inflation. Healthcare, particularly the high cost of prescription drugs, is a top concern for US voters. Biden had held a slight lead over Donald Trump for his platform throughout the year before he dropped out of the race.

The 10 drugs subject to negotiations, among them widely used blood thinners and diabetes medications, are expected to save $6bn for Medicare, which is a major government health insurance program covering Americans older than 65, and those with certain disabilities, the administration said. Seniors should save $1.5bn directly in out-of-pocket costs.

The negotiated prices, which take effect in 2026, were authorized by the Inflation Reduction Act, that Biden emphasized passed without a single Republican vote. The vice-president cast the tie-breaking vote in her role as president of the Senate.

The negotiated prices, which take effect in 2026, are expected to save billions of dollars for the taxpayer-funded Medicare program. But they will lead to direct out-of-pocket savings for only a subset of the millions of older Americans who take the drugs subject to negotiations. Healthcare costs in the US have been rising for several decades, and Americans spend upwards of $13,000 a year on medical services and medications.

The law already caps out-of-pocket costs for insulin at $35 a month for Medicare patients. It also calls for a $2,000 cap on out-of-pocket drug spending.

Earlier this week, Harris and Biden participated in a Situation Room meeting to discuss the situation in the Middle East. They also appeared together on the tarmac at Joint Base Andrews to welcome home US citizens wrongfully detained in Russia.

On Friday, Harris will travel to North Carolina to deliver an economic policy speech, during which her campaign said she would call for a federal ban on price gouging on groceries. Though Trump had held an advantage on the economy over Biden, recent polling suggests Harris has erased much of his early lead.

Linda Hunt, 80, said she rarely attended political events, but came to witness history.