This is good news for millions of Americans… but also for Kamala Harris. After lengthy negotiations, the White House announced on Thursday, August 15, that it had reached an agreement with pharmaceutical companies to regulate the price of ten drugs widely used by the elderly. For the first time, the American Department of Health has negotiated directly with the companies on behalf of the “Medicare” program, the public health insurance for Americans over 65. The drugs in question treat common pathologies among seniors, such as blood clots, cardiovascular diseases, diabetes and arthritis.
The deal is a major victory for the U.S. executive branch in terms of spending power, a top concern for voters. Starting in 2026, when the new prices go into effect, Medicare beneficiaries will save $1.5 billion a year and $6 billion for taxpayers, according to the White House statement.
Many American citizens will see the difference in their daily lives. According to the Assistant Secretariat for Planning and Evaluation (ASPE)which advises the Department of Health, about nine million Medicare beneficiaries use at least one of the ten selected drugs. This is especially true since health is a source of financial concern for Americans. The price of drugs in the United States is not regulated by the government and is therefore much higher than in other developed countries. You often have to pay part of the cost out of pocket, even if you are insured.
Strengthening your balance sheet
The agreement was announced in a joint statement by President Joe Biden and his vice president.Kamala Harris. “Today, the Biden-Harris administration is delivering on its promise to lower drug costs for seniors and save money for Americans,” the executive couple said. This economic victory would not have been possible without theInflation Reduction ActJoe Biden’s gigantic investment plan for purchasing power, which allowed “Medicare” to negotiate the price of certain drugs. The law also allowed the price of insulin for the elderly to be capped at $35 per month, while some patients had to pay several hundred dollars. This is also one of Joe Biden’s measures most appreciated by Americans.
The fact that Kamala Harris is associated with this agreement is not insignificant. She did not play a central role in Joe Biden’s economic reforms. But the press release mentions her decisive vote to adopt theInflation Reduction Act in the Senate. The Democrats did not have an absolute majority at the time and the upper house of Congress was divided. It was therefore the vice president’s vote that allowed the law to pass.
Now, Kamala Harris can use this drug reform to strengthen her record on purchasing power. Inflation, which is falling today, has long remained high in the United States, overshadowing Joe Biden’s other economic accomplishments and fueling Donald Trump’s attacks.
Points among older voters
The Democratic candidate, in addition to reaping the benefits of the Biden presidency, also says she wants to go further. “President Biden and Vice President Harris took on Big Pharma and won […] “We won’t stop there,” the statement read. Continuing to lower drug prices is one of Kamala Harris’ major campaign promises. In recent days, campaign ads have already highlighted her victories against the pharmaceutical industry and she is expected to detail proposals on this subject at a rally on Friday, August 16.
Electorally, the reform could be useful to Democrats, particularly in swing states. According to a study by the Kaiser Family Foundationa nonprofit health policy organization, only half of Americans over 65 are aware of these drug price negotiations. If Harris can get the measure out there, she could make a major breakthrough among older voters.
The Democratic candidate will be in Maryland this Thursday, August 15, with Joe Biden to celebrate the agreement and reveal the new amount of drugs, which has not yet been announced. Since his withdrawal from the presidential election, Joe Biden has not appeared much in public and Kamala Harris prefers not to rely too much on him to chart her own path and not suffer from his unpopularity. But by showing herself to be on the job, at the forefront with the American president, she can be perceived as more “presidential”, as when she welcomed, with Joe Biden, the American prisoners released from Russia. According to the latest polls, Kamala Harris and Donald Trump are neck and neck. The Democrat is even gaining ground in certain key states. This strategy of credibility and responsibility could allow her to consolidate her lead.