Drug Prices and You
Last year the Biden Administration was able to get the Inflation Reduction Act passed through Congress and become law. Mainly it was an attempt to reduce drugs prices for everyone especially seniors.
10 drugs were chosen and as of 2026 their price will be $35 per month for any of those drugs. However, it is only partially true. In 2025, all Medicare drug plans had a deductible of $615.00 for the year. The 2026 deductible has not been established because Congress is not at work.
The actual way these prescription drugs work is another matter. Assume there is a deductible on your plan. You need to meet that deductible first and if any of the 10 drugs is yours, after meeting the deductible, the price is $35.00.
I happen to take one of the 10 drugs mentioned. Currently, I am paying $550 per quarter for a 90-day supply. In 2026 I’d have to meet the annual deductible first before enjoying the $35 piece tag. So, I pay the first $550, leaving $65 of deductible left. The next month I pay the remaining $65, plus the $35 and then pay $35 for the remainder of the year as established by the Inflation Reduction Act.
Like many Americans, I assumed the $35 price was all year. I agree this is a marked improvement over previous years, it still is not what was advertised to the public when the law was passed, I assumed the price would be $35 all year without regard to the deductible.
The cost differential for me is nominal but for others it could be a major expense when they must meet the deductible prior to getting the $35 price for their medication. One can only assume that there will be many heated discussions with the pharmacist over this issue. Clear and concise information from the government could have prevented this upcoming disaster.
Part of the problem is Congress is not on the Affordable Care Act or Medicare so while they listen to constituents they really don’t care because their plans are so much better than the ACA or Medicare.
While this is an improvement it is not what was advertised and many people when they learn how it really works will be upset. The pharmacies should have an explanation posted so anyone can read and if they have questions,
talk to the pharmacy manager. If I were running a pharmacy. I’d post the law with an explanation of how the program works to avoid any potential issues. The explanation would include a drug and how the pricing works and hopes the seniors understand it.
I believe this is necessary as the law is not clear and there will be much confusion and tempers will flare.
I will try to do my part by explaining to my senior clients how this will work and hopefully eliminate any confusion.
Available for consultation on the drug plan or anything Medicare.
I hope this information is useful and if anyone has questions, please contact me via phone or email and I will respond quickly.
Also, you may want to take a look at Medicare 2025 Information. 2026 Medicare Information coming soon.
The Barend Agency Inc.
Len Barend, Broker
Cell:702-250-2200