On September 16, New York Senator Kirsten Gillibrand and State Senator Gustavo Rivera announced the “Prescription Cost Capping Act” in New York, which will allow individuals and families with private health insurance to benefit from prescription drug cost caps.
The federal senator, Kirsten Gillibrand, stated during the press conference that the “Prescription Cost Capping Act” will extend the annual out-of-pocket prescription drug cost cap policy to individuals participating in private health insurance: individuals will have a maximum annual prescription drug cost of $2,000, while families will have a maximum of $4,000.
In a statement, Gillibrand said, “I am currently working to reduce the prices of all drugs, benefiting all Americans.”
State Senator Gustavo Rivera emphasized, “It must be recognized that healthcare is a human right,” and Gillibrand’s legislation will ensure that individuals do not have to make choices between health and finances.
Gillibrand pointed out that the Biden-Harris administration passed the “Lowering Inflation Act” in 2022, achieving historic savings by negotiating the prices of federal medical insurance drugs, limiting the price of insulin for seniors to $35 per month.
“After negotiations on drug prices, the federal medical insurance plan is projected to save $6 billion, proving that the ‘Lowering Inflation Act’ is serving the American people,” Gillibrand said.
In August of this year, the U.S. Department of Health and Human Services announced that the Biden-Harris administration had successfully negotiated the lowering of prices for 10 federal Medicare prescription drugs, set to take effect on January 1, 2026, mainly used to treat diseases such as heart disease, diabetes, and cancer.
For individuals participating in Medicare Part D prescription drug insurance, the new prescription drug prices will come into effect on January 1, 2026.
The “Prescription Cost Capping Act” is based on the drug price reforms included in the “Lowering Inflation Act of 2022,” following up on the provision that the out-of-pocket prescription drug cost cap for individuals in the federal medical insurance Part D program is set at $2,000 per year.
The “Prescription Cost Capping Act” was jointly initiated by federal Senators Bob Casey, Raphael Warnock, Amy Klobuchar, John Fetterman, Richard Blumenthal, Chris Van Hollen, Martin Heinrich, Tammy Baldwin, Peter Welch, Patty Murray.
Congresswoman Kathy Manning introduced complementary legislation in the House of Representatives.