PURPOSELY WROTE REALLY BAD LEGISLATION, WHICH I DON'T THINK WAS ANYONE'S INTENTION.

>> TEN LIFE-SAVING PRESCRIPTION DRUGS COULD SOON COST LESS FOR ANYONE ENROLLED IN MEDICARE PART D, ROUGHLY 1.1 WISCONSINITES.

THE FIRST TREAT BLOOD CLOTS, DIABETES, HEART FAILURE, CHRONIC KIDNEY DISEASE, BLOOD CANCERS AND MORE.

ADDITIONAL DRUGS TO BE NEGOTIATED ARE EXPECTED.

THE ACTION STEMS FROM PART OF THE INFLATION REDUCTION ACT, WHICH WILL ALLOW THE FEDERAL GOVERNMENT TO NEGOTIATE PRICES WITH MANUFACTURERS FOR THE FIRST TIME.

MEDICARE CURRENTLY SPENDS $135 BILLION ON PRESCRIPTION DRUGS ANNUALLY.

THE SAVINGS WILL ALLOW IT TO SHORE UP FINANCES ACCORDING TO THE AARP AND EVENTUALLY LEAD TO LOWER PART D PREMIUMS.

FOR MORE WE ARE JOINED BY AARP WISCONSIN DIRECTOR OF ADVOCACY, M MARTIN HERNANDEZ.

>> THANK YOU FOR HAVING ME.

>> HOW MEANINGFUL THAT THE GOVERNMENT CNEGOTIATE DRUG PRICES?

>> WE KNOW AMERICANS HAVE SOME IF NOT THE HIGHEST DRUG PRICES IN THE WORLD.

BEING ABLE TO NEGOTIATE FOR THE FIRST TEN DRUG S IS A HISTORIC FIRST STEP REALLY FOR ALL AMERICANS BUT ESPECIALLY HOLDER AMERICANS, WHO WE ALREADY KNOW ARE ON A FIXED INCOME IN MANY CASES.

AND A LOT OF TIMES THEY ARE THE ONES TAKING THE MAJORITY OF THESE PRESCRIPTION DRUGS.

>> HOW MUCH COULD THIS HELP LOWER OUT-OF-POCKET CO- S FOR SENIORS?

>> WE ARE LOOKING FOR REDUCTION IN TENS OF MILLIONS WHEN WE LOOK AT THE TOTAL SAVINGS.

NOT JUST FOR THESE TEN DRUGS BUT ADDITIONAL ONES THAT WILL GET ADDED ON TO THIS PLAN IN THE FUTURE.

>> BECAUSE THESE DRUGS ARE THE KINDS OF DRUGS THAT MANY, MANY SENIORS TAKE FOR THINGS, AS WE DESCRIBED, LIKE BLOOD CLOTS AND HEART DISEASE AND THAT KIND OF THING.

SO THEY CHOOSE THESE DRUGS IN PARTICULAR?

>> THEY REACHED OUT.

THERE WAS A LOT OF PUBLIC HEARING SESSIONS DONE IN ORDER TO DETERMINE WHICH WERE THE TEN DRUGS INCLUDED ON THIS FIRST BATCH.

THAT WILL CONTINUE HAPPENING AS THEY ADD MORE AND MORE DRUGS.

THERE WILL BE 15 MORE ADDED IN 2027, HOPEFULLY, WITH ANOTHER 20 ADDED TO THE NEGOTIATION BY 2029, GETTING US UP TO POTENTIAL 60 COVERED BY THIS NEGOTIATION PROCESS.

>> THE WHITE HOUSE FACT SHEET SAID ENROLL LEES AVERAGE OUT-OF-POCKET WERE NAERL 6,$500 PER ENROLL LEE LAST YEAR.

WHAT HAPPENS TO PEOPLE WHO SIMPLY CANNOT AFFORD THAT?

>> WELL, THE UNFORTUNATE CIRCUMSTANCE THAT HAPPENS IS, MANY SENIORS EITHER WILL GO WITHOUT THEIR PRESCRIPTION OR THEY WILL RATION IT OUT, WHERE THEY MIGHT TAKE HALF A PILL WHEN SHOULD BE TAKING A FULL DOSE FOR THAT DAY.

OBVIOUSLY WE KNOW THAT HAS MANY DETRIMENTAL AFFECTS TO THEIR HEALTH.

>> IT SEEMS COUNTER-INTUITIVE THAT SENIORS, MANY ON FIXED INCOMES, HAVE TO PAY THAT KIND OF MONEY FOR PRESCRIPTION DRUGS.

WHAT HAS BEEN THE REACTION FROM YOUR MEMBERS TO THIS?

>> I THINK THIS WAS AN EXCITING FIRST STEP.

MANY OF THEM KNOW EXACTLY HOW MUCH OF AN EFFECT THIS WILL HAVE ON THEIR POCKETBOOK AND THEY ARE EXCITED TO CONTINUE THE FIGHT TO BRING MORE AND MORE DRUGS INTO THE PRICE NEGOTIATED SCALE.

>> SO THE NEGOTIATED PRICES DON'T JUST HELP CONSUMERS ON PRESCRIPTIONS.

IT REPRESENTS SAVINGS FOR THE MEDICARE PROGRAM ITSELF.

COULD THAT LEAD TO LOWER PREMIUM S?

>> THAT IS THE HOPE.

IS THAT AS WE BRING THE COST OF MEDICARE DOWN, THAT IT LEADS TO LOWER COSTS OVERALL IN ALL SECTORS OF THE HEALTH CARE FIELD.

>> GIVEN THAT THE NUMBER OF -- THE DEMOGRAPHICS ARE SUCH THAT THE OLDER POPULATION IS GROWING.

THERE'S ALWAYS DISCUSSION ABOUT MEDICARE AND SOCIAL SECURITY.

IF THE NEGOTIATED DRUG PRICES KIND OF SHORE UP MEDICARE, WOULD YOU IMAGINE THAT THEY WOULD ACTUALLY LOWER THE PREMIUMS, OR WOULD THEY JUST KIND OF USE IT TO MAINTAIN THE MEDICARE PROGRAM ITSELF?

>> I THINK THAT IS GOING TO BE THE NEXT BIG CONVERSATION WE HAVE.

THAT'S THE WORK WE ARE DOING, IS GETTING FOLKS ACTIVE IN THEIR POLITICAL PROCESS SO WHEN THAT DECISION COMES, WE CAN HAVE AN ACTIVE VOICE AT THE TABLE.

>> YOU KNOW, IT HAS ALWAYS STRUCK ME THAT A LOT OF PEOPLE THINK THAT SENIORS ON FIX T INCOMES, THEY DON'T HAVE TO PAY FOR MEDICARE.

AND THEY DON'T HAVE TO PAY FOR THEIR PRESCRIPTION DRUGS.

BUT ACTUALLY THOSE PREMIUMS ARE QUITE HIGH, GIVEN MANY SENIOR'S INCOMES.

>> NO, NO.

ESPECIALLY ONE OF THE DRUGS ANNOUNCED AS PART OF THE PROGRAM, JENUVIA, USED TO TREAT DIABETES, THE PRICE HAS GONE UP LIKE 275% SINCE INTRODUCED IN 2006.

WE HAVE 11,000 WISCONSINITES ON MEDICARE WHO TAKE THAT DRUG.

SO HAVING THAT PRICE COME DOWN ANY AMOUNT IS GOING TO MAKE A BIG IMPACT FOR THOSE 11,000 WISCONSIN RESIDENTS.

>> ABSOLUTELY.

YET PEOPLE SHOULD NOT EXPECT THIS TO GO INTO AFFECT UNTIL 2026.

>> 2026 IS THE GOAL.

THERE ARE UNFORTUNATELY LAWSUITS BY THE DRUG MANUFACTURERS.

THE HOPE IS IT DOESN'T DELAY IMPLEMENTATION.

IT'S BEEN LONG COMING, THIS RELIEF FOR ALL AMERICANS.

ESPECIALLY OLDER AMERICANS.

AND OUR HOPE IS THAT COME 2026 WE CAN START ROLLING OUT THE PLAN THEN ADDING ADDITIONAL DRUGS.

>> SO THERE ARE LAWSUITS ON THE PART OF DRUG MAKERS OVER THESE NEGOTIATING THESE PRICES.

BUT COULDN'T THE FEDERAL GOVERNMENT SAY, WELL FINE, YOU DON'T WANT TO DO THIS THEN YOU ARE NOT GOING TO HAVE -- YOU KNOW, YOU CAN'T BE PART OF THE MEDICARE PROGRAM.

>> THAT IS ONE OPTION THEY HAVE.

WE ARE HOPING THAT IT DOESN'T HAVE TO COME TO THAT MUCH OF A HEAD-OFF.

THE DRUG MANUFACTURERS CAN STILL MAKE A HEALTHY PROFIT.

THAT IS OUR STANCE IS THAT EVEN WITH THESE NEGOTIATED PRICES, THEY CAN STILL MAKE A HEALTHY PROFIT, INNOVATE ON NEW DRUGS WHILE STILL PROVIDING AGAIN THAT LOWER COST FOR CONSUMERS.

>> IT IS TRUE THAT THE COST OF INSULIN HAS BEEN CAPPED.

WHAT IS THAT LIKE FOR YOUR MEMBER S?

>> THAT WAS A BIG FIRST STEP.

CAPPING INSULIN.

NOW IT IS CAPPED AT $35 A MONTH FOR FOLKS ON MEDICARE PART B. AARP IS SUPPORTIVE OF EXPANDING THAT TO ALL AMERICAN, ALLOW EVERYONE TO ACCESS TO THAT $35 A MONTH CAP ON INSULIN.

>> WHAT WAS IT?

WHAT WERE PEOPLE HAVING TO PAY?

>> THEY WERE PAYING UPWARDS THREE, FOUR TIMES THE AMOUNT TO ACCESS INSULIN.

>> OBVIOUSLY THAT IS A LIFE-SAVING DRUG.

>> IT IS A LIFE-SAVING DRUG AND ONE YOU CAN'T GO WITHOUT.

FOR ME THAT IS THE MOST IMPORTANT PART.

MANY OF THE PRESCRIPTIONS ARE THE TYPES YOU GO ON AND HAVE TO STAY ON IN ORDER TO MAINTAIN A HEALTHY LIFESTYLE.

IT IS NOT SOMETHING SOMEONE CAN TAKE AND, AGAIN, EITHER TAKE LESS OR RATION OUT THEIR PRESCRIPTION.

>> MARTIN HERNANDEZ, THANKS VERY MUCH.

>> THANK YOU.

>> FOR MORE ON THIS AND OTHER