Biden Spotlights Drug Prices, Medicare, Social Security in State of the Union
Biden calls for expanding Medicare drug price negotiations to include up to 500 drugs over next decade.
President Joe Biden touted his administration’s achievements so far and vowed to protect Social Security and Medicare and fight high drug prices as he addressed the nation in his State of the Union address last night (March 7).
"Tonight, let's all agree once again to stand up for seniors. Many of my friends on the other side of the aisle want to put Social Security on the chopping block," he said. "Anyone here who tries to cut Social Security, Medicare or raise the retirement age, I will stop you."
With the general election just months away, Biden tackled a range of issues and called on Congress to expand certain provisions under his landmark Inflation Reduction Act (IRA). These include the Medicare Drug Price Negotiations program, which allows Medicare for the first time to enter pricing talks with drugmakers to reduce the costs of some of the highest-priced Part D drugs prescribed in the U.S.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Negotiations are now underway for the first 10 drugs under the program, and plans call for adding up to 60 more drugs to the program during the next four years and up to 20 additional drugs per year after that.
Last night, the president called for adding 500 drugs over the next decade.
"We finally gave Medicare the power to negotiate, just like the VA is able to do for veterans," he said. "That's not just saving seniors money. It's saving taxpayers money. We cut the federal deficit by $160 billion because Medicare will no longer have to pay those exorbitant prices to Big Pharma."
Next year under the same law, total prescription drug costs for Medicare beneficiaries will be capped at $2,000 annually. Biden said he wants to cap these costs at $2,000 for everyone.
"I'm also getting rid of junk fees," Biden said, highlighting his administration’s proposed rules to eliminate junk or hidden fees in a range of markets including banking, cable and travel. He noted the recent finalization of the junk fee banking rule that caps credit card late fees at $8, down from the current $32.
Republican response to the State of the Union
Biden, who spoke before a joint session of Congress, faces tough opposition from Republicans on many of his policies and programs. His delivered the address just two days after the Super Tuesday primaries, where former President Donald Trump swept the GOP nomination in most states and is the presumptive nominee to square off against him in the 2024 presidential race.
Last night was a key opportunity for Biden to claim economic victories for his administration, given low consumer sentiment about the economy as Americans faced inflation and uncertainty in the wake of the COVID pandemic.
Sen. Katie Boyd Britt (R-AL), the youngest Republican woman ever elected to the Senate, delivered the GOP response following Biden’s address, saying that the president "just doesn't get it."
She said that families are worse off under his administration. "Hardworking families are struggling to make ends meet today. And with soaring mortgage rates and sky-high childcare costs, they're also struggling to plan for tomorrow," she said.
RELATED CONTENT
-
How to save for college and retirement at the same timeSponsored Consider these steps to balance two of life’s most significant financial goals.
-
8 ways to potentially lower your taxesConsider these strategies to potentially reduce your taxes.
-
6 common tax mistakes for investors to avoidSponsored Watch for these common tax mistakes to avoid for investors, to help manage the impact of taxes on your portfolio.
-
6 Champagne Problems Successful Retirees FaceWhat do you do if your biggest financial threat is simply having too much of a good thing — money?
-
A Portfolio Checklist If You're Planning to Retire in 2027Are you planning on retiring in 2027? This portfolio checklist will help put you on the right path.
-
How to Avoid Being Buried by the Tax Avalanche in Retirement: Tips From a Wealth AdviserAll that cash you have in tax-deferred accounts could launch you into a higher tax bracket when you start withdrawals. It's time to protect your income.
-
I'm a Financial Adviser: This Is the Real Secret to Retirement SuccessFor real retirement security, forget about chasing returns and focus instead on the things you can control: income, taxes, risk-taking and decision-making.
-
Is Your Retirement Plan Based on Social Security Fact or Fiction?One in two Americans don't know much about Social Security — and some are basing their retirement on mistaken beliefs. It's time to separate fact from fiction.
-
Are You Investing to Score Points or Make Money? Cautionary Tales From an Investment AdviserHave you become numb to risk? Is your brokerage app or website fueling your desire to trade? An investment adviser explains why it always pays to be cautious.
-
Your Parents' Retirement Plan Won’t Work for You (The Stats Are In)Five stats show how you need to rethink retirement, because "the future ain’t what it used to be."
-
Are Roth Conversions for Retirees Dead in 2026 Because of the New Tax Law?The OBBBA's permanent lower tax rates removed the urgency for Roth conversions. Retirees thinking of stopping or blindly continuing them should do this instead.
