Vermont's Health Care Advocate says a decision by the federal government to negotiate Medicare drug prices with pharmaceutical companies could help reduce health insurance premiums.
When Congress passed the Inflation Reduction Act in 2022, it included a provision to allow Medicare to negotiate prices with the drug companies.
The Biden administration has just released the first 10 drugs under this plan, which it says will reduce costs between 40% and 80% beginning in 2026. Another 50 drugs will be added in the coming months.
About 19,000 Vermonters use at least one of the drugs on the initial list that was announced Thursday, Peter Welch's office said in a news release.
Michael Fisher, who is Vermont's health care advocate, says the program could have a major impact in Vermont because lawmakers this year asked the Green Mountain Care Board to study a plan to use these negotiated prices for all consumers in the state.
"Pharmaceuticals are every year a significant factor in the costs of care," Fisher said.
The board is expected to release its initial findings to the Legislature in January.
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