Biden Addresses Health Care Costs and First Drugs for Medicare Price Negotiations Transcript

Good afternoon everyone.

(00:18)
Good afternoon. Please have a seat. Good afternoon. It’s a room full of leaders. Well, thank you everyone for being here and for all the work that you have done leading up to today. I want to thank, of course, our nation’s champion, President Biden, for your leadership and commitment to lowering cost for working families in every way. And thank you to all of the members of Congress for the work that you have done and continue to do to help us achieve this type of progress. So we are here today with the firm belief that in the United States of America, no senior should ever have to choose between whether they are able to fill a prescription or fill their refrigerator with food.

(01:04)
But for… yes.

(01:14)
Because we know for years far too many of our seniors, millions of our seniors across the country have struggled to afford their prescriptions. And too many of our seniors risked their health as they may have delayed to refill their prescription or they cut their pills in half to try and stretch out the length of time that they could take their medication. So since we took office, President Biden and I and our administration has taken historic action to cut the cost of prescription medication for our seniors. We capped the cost of insulin at $35 a month. We’ll cap the total cost of prescription drugs at $2,000 a year. And we have made vaccines free of charge, which will save seniors hundreds of dollars every year. Yes. And we’ve finally allowed Medicare to negotiate the price of medications with big pharma companies, to benefit of 65 million Americans at least.

(02:44)
And as many of you know, we’ve worked together. Over the course of my career, I’ve seen the stakes of this fight firsthand. When I was Attorney General of California, I met with countless families who are often quietly suffering because they or a loved one could not afford the medication they needed and were prescribed. I investigated drug makers that tried to stop production of cheaper generic versions of their drugs, and we held them accountable. And we intervened in the merger of hospitals that could have resulted in less competition or increased cost for their patients. All that to say there are many factors that drive up healthcare costs and make medications more expensive.

(03:30)
And President Biden and I will continue to use every tool at our disposal to bring these costs dow7n. And we will hold accountable those who try to put profits ahead of the health and wellbeing of the American people. And together, we will continue to build a nation where every person, not just the wealthy or well-connected, has the opportunity to thrive and can live a life of dignity after they retire. So that includes, of course, our next speaker. Please welcome Steven Hatfield. Thank you very much.

My name is Steven Hatfield and I’m from Matthews, North Carolina. I’m 71 years old, a husband, a grandfather of three and a football fanatic.

(04:41)
I also live with a rare blood cancer and type two diabetes, two health conditions that require very expensive drugs. Every month, the treatment I need to stay alive costs $16,000. I have been a hard worker all my life, and I always had to work multiple jobs simultaneously so I can afford my medications. My doctors have constantly warned me over the years, the strain for all these jobs could seriously impact my health. But I’m afraid if I retire, I won’t be able to afford what I need to survive. At times, I’ve had to forego or ration some of my drugs because they were just so expensive. No one in America should have to live this way.

(05:31)
That’s why I am so grateful to President Biden for passing the Inflation Reduction Act. It already made a huge difference in my life. Instead of having to pay $400 per month for my insulin prescription, I now get it for $35. And soon Medicare will be able to negotiate lower prices for cancer drugs too. It’s given me an entirely new lease on life. For too long, drug makers have made a fortune while patients like me live in constant fear, wondering how we pay for our medicine. Thanks to President Biden, that’s changing. He’s finally ending Big Pharma’s one-sided pricing power and giving seniors like me a break. But it’s not just me. His actions are literally saving the lives of so many other patients and families across the country who are struggling to pay their medical bills. He gets it. And that’s why it is my greatest honor to introduce the man responsible for all these incredible changes, President Joe Biden.

Thank you.

Thank you very much.

I look around the room and this is a long time in coming. Bill, we started doing this 25, 30 years ago, seeing we could do something about these outrageous prices. Give people a fighting chance. Unless you needed the drugs yourself or knew someone who did, it wasn’t as real, but boy, we’ve been fighting big pharma for a long time. A long, long time. And Steven, as my mother would say, God, love you, son. You’ve been through one hell of an ordeal. Your story is a familiar one from too many Americans. Instead of using all your energy to fight the disease, you’re fighting insurance or drug companies for medicines that literally keep you alive.

(08:04)
Without them, you’re not going to be here. On too many nights, too many Americans lay in bed staring at the ceiling, worrying what will happen if their spouse gets sick, if their child gets sick or something else happens to them. I should have said at the outset, when I look out in the audience, there’s a lot of people who are in this fight, some even before me that it just is amazing. I want to thank you, the people sitting in front of me, the members of Congress, the organizations you’ve belonged to for making this happen. It wouldn’t happen without you. And that’s not hyperbole. Thank you, thank you, thank you, thank you, thank you.

(08:42)
I’m serious. I’m deadly honest about it.

(08:54)
I really am. So thank you. You know, questions you lie in bed, wonder about. I remember we lived in a three-bedroom split-level home with four… We weren’t poor. Just a normal middle class, I guess technically lower middle class family, but in the development of homes and the bulk of my childhood, that was a three-bedroom split-level home that had four kids and a grandpa living with us. And you could hear everything in the house. I remember one night, to God’s truth, I remember one night, I guess I was a sophomore or junior in high school and hearing the headboard of my dad’s, but I could tell my dad was restless in the next room. Next morning I get up and ask my mom, I said, “What’s the matter with dad?” She said, “The company just said they’re not going to pay insurance anymore.” Health insurance.

(09:43)
Well, that’s tough enough, but imagine when you have lifesaving drugs you need to keep you alive. Do you have enough insurance? Can you afford your medical bills? Do you have to sell the house in order to pay for everything? For all of you out there, I get it and millions of Americans get it. And I promise you, I’m going to have your back and I’ll never stop fighting for you on this issue, nor will Kamala. Nor will Kamala.

(10:09)
But again, I’m not being solicitous when I say for all of you sitting in the audience, this would never happened without you. Never would’ve happened without you. I’m not going to start naming names because I’m going to get in real trouble if I do that. But thank you. Two weeks ago, we celebrated the first anniversary of the Inflation Reduction Act, which in a sense is misnamed. We did lower inflation, but there are many other things in that legislation. One of the most significant laws ever enacted, especially when it comes to reducing the cost of prescription drugs. We pay more for prescription drugs than any other major economy in the world. You can walk on a local drug tour across the country. You’re paying two to three times more for the exact same prescription manufactured by the exact same company than it would cost you in Canada, or France, or anywhere else around the world.

(11:12)
Think about that. A drug company that makes a drug here in America, if it’s sold in Chicago, you can buy the same drug in Toronto or Paris cheaper than you can buy it in Toronto. I mean in Chicago. And unlike other parts of the healthcare system, big pharma got a special carve out that stopped Medicare from negotiating prices of drugs through Medicare. For years, advocates like many of you in this room, have worked tirelessly to change that and give Medicare the power to negotiate lower prescription drug prices. Just like the Department of Veterans Affairs does right now. It matters.

(11:54)
VA pays 50% less than Medicare can, and negotiating the same lower prices. For years, big pharma blocked us. They kept prescription drug prices high to increase their profits and extend patents on existing drugs to suppress fair competition, instead of innovating. Playing games in pricing so they could charge whatever they can. But this is finally, finally, finally… we had enough votes by a matter of one to beat Big Pharma. Well, we did it. We passed the Inflation Reduction Act with no help from the other team. Every single person on the other team in the Congress voted against it. Every single one. And we’re in a situation here the law finally gave Medicare the power to negotiate lower prescription drug prices. And by the way, negotiating drug prices alongside other provisions of this law isn’t just going to put more money back in the pockets of millions of Americans across the country. It’s also going to lower the federal deficit.

(13:10)
According to the Congressional Budget Office, it will save the federal government 160 billion over the next 10 years because Medicare won’t be paying less for the prescription drugs they’re making available to seniors. The Inflation Reduction Act is already making a huge difference. Take insulin as referenced by Steven. That drug cost $10 to make. The guy who invented the drug who came up with it, didn’t patent it because he wanted it available for everybody, but drug companies are charging 30 times that $10, or more than that. Now because of the Inflation Reduction Act, seniors on Medicare like Steve are paying $35 a month instead of $400 a month. It matters.

(13:57)
Three months after the Inflation Reduction Act went into effect, all three of the major insulin manufacturers lowered their prices for insulin for everyone. For everyone. Not just seniors, everyone. That’s originally what I had proposed. Everyone. We lost on getting everyone, but we kept seniors. When we act, change happens. And today I’m proud to announce that Medicare has selected the first 10 additional drugs for negotiation under the Inflation Reduction Act. 10 additional. Drugs that treat everything from heart failure, blood clots, diabetes, kidney disease, arthritis, blood cancers, Crohn’s disease, and so much more. Medicare spends $50 billion a year on these 10 drugs. And American seniors are spending 3.4 billion on out-of-pocket cost. Look, if you compare the total drug price globally, the United States is clearly an outlier. For example, one of the selected drugs that treats blood clots costs about $80 for a monthly prescription in Canada.

(15:07)
The same exact drug in the United States made by the same exact company cost over $270 a month made by the same company here, sold in the United States America. Triple the cost just crossing the border. Think about that. Big Pharma is charging Americans more than three times what they charge other countries simply because they could. And I think it’s outrageous. That’s why these negotiations matter. Reducing the cost of these 10 additional drugs alone will help more than nine million Americans. And by September 2024, HHS, Health and Human Services is going to publish the prices it negotiated. In January of 2026, the new prices will go into effect. But we’re not stopping there. Next year, Medicares will select more drugs for negotiation, so more Americans get more savings on lifesaving medications they need and deserve.

(16:09)
But guess what? Big Pharma doesn’t want this to happen, as you might expect. Last year the industry spent $400 million in lobbying fees to try to stop the Inflation Reduction Act and block the ability of the federal government to lower drug prices. And when they failed, they went to federal court to sue the government in attempt to maintain their exorbitant prices. They’re hoping the courts will do what Democrats and Congress wouldn’t do; protect the exorbitant profits and keep negotiations from happening. But we’re going to see this through. We’re going to keep standing up to Big Pharma and we’re not going to back down.

(17:02)
Folks, there was a lot of really great Republicans out there, and I mean that sincerely. But we’ll stand up to the MAGA Republicans who voted against Inflation Reduction Act and now are attempting to still repeal it in the name of the MAGA Republicans who have been trying for years to get rid of the Affordable Care Act. Deny tens of millions of Americans access to quality affordable healthcare. Today is the start of a new deal for patients where big pharma doesn’t just get a blank check at your expense and the expense of the American people. On my watch, healthcare should be right, not a privilege in this country. There are other ways the Inflation Reduction Act is lowering healthcare costs as well. As mentioned, beginning in 2025, the Inflation Reduction Act caps total out-of-pocket drug costs for seniors on Medicare at $2,000 a year total. Even if their expenses…

(18:13)
Even for expensive cancer drugs that could cost 10, 12, $14,000 a year max, cumulative, $2,000. The law already requiring that drug companies that raise prices faster than inflation have to pay the difference to the government between what they charge and the rate of inflation. This quarter, seniors are paying up to $449 less per dose for drugs that hike their prices faster than inflation. In addition to the law, my administration is cracking down on junk health insurance plans that look like they’re inexpensive, but too often stick consumers with big hidden fees. No one likes to be taken advantage of. We’re also cracking down on surprise medical bills. You’ve all heard of the stories of people who choose a hospital that’s in their insurance network, then get a surprise bill of thousands of dollars because the hospital assigned an anesthesiologist, for example, who wasn’t in their network.

(19:16)
Well, not anymore. Preventing one million surprise medical bills every single month when we have changed this law. Loan prescription drug costs is part of a much broader vision for the country. Growing the economy from the middle out and the bottom-up, not from the top-down. Because when the middle class does well, everyone does well. I’m a capitalist. If you make a billion dollars, fine. Just pay a little bit in taxes. Everyone does well when we do it this way. The Financial Times and the Wall Street Journal, I don’t think they meant it as a compliment originally started referring to my economic policy as Bidenomics. Well, guess what? It’s working.

(20:05)
Since we were sworn in January 2021, the economy has created more than 13 million new jobs since I took office on that day. We’ve created more jobs in two years than any president has in a single four-year term. Unemployment has been below 4% for the longest stretch in 50 years, and now we have more jobs than we did before the pandemic. Workers aren’t just finding more jobs, they’re finding better jobs, higher paying jobs and job satisfaction. The rate of Americans without health insurance is at an all time low. Premiums for coverage for millions of Americans under the Affordable Care Act are $800 lower per person than before I took office.

(20:57)
While we have more to do, inflation is down by two thirds. Inflation is now down close to 3%, the lowest among the world’s leading economies, with wages growing faster than inflation. This matters to ordinary people. The way I think about inflation, the way my dad talked about it around the kitchen table, he’d say, “The real issue is how much do you have after you pay all your monthly bills? What’s left? How much do you have leftover to pay for necessities? Will there be enough room at the end of the month just to have a little bit of breathing room?” Well, the Inflation Reduction Act is giving more breathing room, especially when it comes to healthcare costs. Way I look at it, Bidenomics is just another way of saying restoring the American dream. I believe every American willing to work hard should be able to get a job no matter where they live, raise their kids on a good paycheck, take care of their healthcare for their families.

(22:05)
My dad used to have another expression for real. And the kids I grew up, the guys I grew up with, remember it. He said, “Joey, your job’s about a lot more than a paycheck. It’s about your dignity. It’s about respect. It’s about being able to look your kid in the eye and say, “Honey, it’s going to be okay,” and mean it.” That’s part of the American dream.

(22:27)
Let me conclude with this. I’m proud of the historic laws my administration has passed. Through the right steps, not only get our economy moving again, but to build a future better than the past. I’m not trying to return to the past. I’m trying to build a better future than we have. And it’s not about me. It’s about you, the American people. We’ve faced pretty tough times in recent years, but the American people didn’t give up. They never give up. You’re the ones getting up every single day doing the work. You’re the real heroes in this story. We all hear from our friends on other side of the aisle about what they claim is wrong with America. They tell you we’re failing, that America’s failing. Well, they’re wrong. America isn’t failing. America is winning. And as I said 1,000 times, there is no quit in America. None.

(23:29)
I’ve said it more than 1,000 times. It’s never been a good bet to bet against America. This is still a country that believes in honesty, decency, and integrity. And we’re still a country that believes in hard work. We’re still a country that believes in each and every one of us is created equal and deserves an equal chance, and we’re still the beacon for the entire world. Everyday ordinary people do extraordinary things. That’s who we are. So let me tell you, America’s best days are ahead of us. They’re ahead of us. They’re not in the past. They’re ahead of us.

(23:59)
And this is all about the future. This is about each of us writing the next chapter in American history. That’s why I’ve never been… I mean this, I’ve been saying this for a long time. I’ve never been more optimistic about America’s future. We just have to remember who we are. We’re the United States of America. There is nothing beyond our capacity when we work together. Nothing. I’m not joking. Think about it. No goal we’ve ever set have we failed to meet when we’ve worked together. So God bless you all, and may God protect our troops. Better days are coming.

(24:30)
Thank you.

[inaudible 00:24:51].

(24:30)
First get up there. I want to take your picture. [inaudible 00:27:12].

(24:30)
We’re arch rivals. Arch rivals. We go way back. We go way back.