88 Percent of Older Adults Want Medicare to Negotiate Drug Prices, According to New Survey

A survey of more than 1,234 older Americans from The Senior Citizens League (TSCL) found 88 percent of respondents support legislation that would allow Medicare to negotiate prescription drug prices, reports WFMZ-TV 69 . "Reducing the cost of prescription drugs is essential for both Medicare beneficiaries and Medicare's finances," says TSCL analyst Mary Johnson. "The average monthly Social Security retiree benefit is just $1,552, while spending on prescription drugs is the fastest growing cost that most retirees face in retirement," she says. Drug costs eat up a growing portion of Social Security income over time, because prices are appreciating several times faster than annual cost of living adjustments. Johnson says Medicare beneficiaries' out-of-pocket expenses for prescription drugs totaled $4,097 last year, including what enrollees and their drug plans pay. "Under the standard Part D benefit, the beneficiary is responsible for about 25 percent of that amount, and drug plans cover the remaining 75 percent up to an initial coverage limit which is $4,130 in 2021," she notes. The U.S. Congressional Budget Office (CBO) calculates that the Elijah E. Cummings Lower Drug Costs Now Act could reduce government spending on Part D by $456 billion over a decade, but the estimates are uncertain, especially if price negotiations diverge from the CBO's reading.