A recent agreement between the Biden-Harris administration and pharmaceutical companies is set to significantly reduce prescription drug costs for thousands of Native American elders on Medicare. The deal, announced by the White House, will lower out-of-pocket expenses for senior citizens through provisions in the Inflation Reduction Act, starting January 1, 2026.
This development is particularly crucial for Indian Country, where American Indians and Alaska Natives face the highest rates of diabetes (14.7 percent) among all racial and ethnic groups in the United States. Diabetes is the fourth-leading cause of death among Native Americans across Indian Country.
Dr. Valarie Blue Bird Jernigan, director of the Center for Indigenous Health Research and Policy at Oklahoma State University, attributes the diabetes epidemic in Native populations to factors such as income, food insecurity, lack of access to exercise, and limited community resource funding.
The agreement is expected to save Medicare beneficiaries an average of $400 per year on prescription drugs when the out-of-pocket cap drops to $2,000 in 2025. Additionally, 1.9 million enrollees with the highest drug costs will save an average of $2,500 annually.
The negotiated prices for ten high-spend drugs, including several used to treat diabetes, will take effect in 2026. This change is projected to save Medicare beneficiaries $1.5 billion in out-of-pocket costs in the first year alone.
According to recent data, 10.2% of American Indians and Alaska Natives were covered by Medicare in 2013-2017. The new deal will provide much-needed financial relief to tens of thousands of Native Americans, allowing them to allocate saved funds to other essential needs.
See “Lower Prescription Drug Prices Will Help Thousands of Native Americans on Medicare” (August 18, 2024)
