Three times per day, Doug Hart dutifully takes his medicine. One of his prescriptions is for the drug Eliquis, a blood thinner.
"In Canada, Eliquis is $1.61 a pill. Here it's $5.61. $5 more a pill. I take two pills a day that's $300 more a month," Hart said.
In 2022, Hart spent $17,000 out of pocket for prescription drugs. He's spent $7,000 out of pocket for medications so far in 2023.
Hart is one of 165,000 Arizonans who hope to benefit from the first-ever Medicare price negotiations.
"The number one reason why seniors skip or ration their medications is because they cannot afford it. So, this will save millions of Arizonans a lot of money on their prescription drug costs," said Dana Kennedy, State Director for AARP.
Medications to treat heart disease, diabetes, and Crohn's disease are among the most expensive prescriptions in Medicare Part D.
The Federal government says the cost for enrollees was estimated at $3.4 billion in 2022.
"Most countries are negotiating costs, and we pay the most in the entire world. So I think the benefits are dramatic," Kennedy said.
The Federal government will begin negotiating a price with pharmaceutical companies for 10 medications, with Eliquis being one of them. That's a start for retirees like Hart.
"It's going to be a tremendous savings for me and I'm sure millions of Americans that are really struggling," Hart said.
Allowing Medicare to negotiate drug prices is part of the Inflation Reduction Act. Drug companies are suing to try and block price setting because the industry believes the costs are necessary to help fund research and develop new treatments and cures.
The new law requires the Federal government to cap out-of-pocket expenses for Medicare enrollees at $2,000 by 2025. It also prevents drug companies from raising prices above the cost of inflation.
