In Flint, HHS secretary stresses Biden admin health care efforts as pharmacies face challenges

U.S. Health and Human Services Secretary Xavier Becerra in Flint on July 10, 2024. | Kyle Davidson

U.S. Department of Health and Human Services (HHS) Secretary Xavier Becerra on Wednesday joined members of the Michigan Pharmacists Association and local pharmacists in Flint to highlight President Joe Biden’s health care efforts.

Pharmacists applauded the Biden administration’s proposals in the Inflation Reduction Act capping insulin copays at $35 for Medicare Advantage and Part D recipients and eliminating costs for vaccines covered under Medicare Part D, where vaccines for illnesses like shingles and whooping cough previously cost seniors between $200 and $400.

“There are a lot of seniors in America who can’t afford $400 to get a vaccine. So what do they do? They roll the dice and hope that they don’t get shingles,” Becerra said.

John Gross, the owner of the JGross Pharmacy Group and the executive director of the Michigan Independent Pharmacy Association, discussed his personal experiences listening to seniors decide which medications they were able to purchase based on the cost, calling the insulin cap and the 2025 reduction of the cap on out-of-pocket drug costs “exciting.”

Currently, out-of-pocket drug costs for Medicare recipients are capped at $3,500. In 2025, that cap will be reduced to $2,000. DHHS estimates that Medicare Part D enrollees in Michigan will save about $113 million as a result of 2024 limits on out of pocket costs.

“People are gonna say $2,000? That’s still a lot of money. If you’re a cancer patient, if your patient has got cardiovascular disease, if you’ve had a stroke, then you know what your medications cost: tens of thousands of dollars. Starting next year, no more than $2,000 will come out of your pocket. That’s going to be a major savings for millions of Americans,” Becerra said.

In two months, HHS is also set to announce the result of price negotiations for the 10 most expensive drugs in the Medicare system, Becerra said, with those 10 drugs costing Medicare recipients $46 billion annually.

Too many Americans are rationing medication, cutting pills in half to extend the amount of time before they need to buy more and skipping doses to ensure these medications can last the month, Becerra said, emphasizing cost-reduction programs were not just aimed at improving health, but giving people peace of mind.

While Biden has delivered on promises to lower health care costs, expand access to more Americans and provide better benefits, there is still more work to be done, Becerra said.

Eric Roath, director of government affairs for the Michigan Pharmacists Association, pointed to recommendations in the recent Federal Trade Commission interim report on pharmacy benefits managers , which would help lower drug costs.

The report, released Tuesday, highlights how the practices of pharmacy benefit managers — which function as middlemen between insurance providers and pharmaceutical manufacturers — allows them to profit by inflating drug costs and imposing unfair, arbitrary, and harmful contractual terms on local pharmacies.

“We urge members of Congress and the administration to keep doing the good work that they’re doing to investigate the core causes that are making it more difficult for our citizens to receive the essential medications that they need,” Roath said.

“Our pharmacies strive for every opportunity to serve our patients in an accessible and sustainable manner. Ultimately, this means better access to essential health care services, including medications for all citizens, but especially for our most vulnerable patient populations,” Roath said.

Bryan Homberg, the pharmacy manager at Flint Family Pharmacy said independent and community pharmacies are under attack, with many at risk of closure. He raised concerns about the negative impacts of pharmacy closures on patients, pointing to Rite Aid pharmacies shuttering in Michigan after the company filed for bankruptcy and the Walgreens locations closing nationwide .

“This is a travesty for patient access to health care that will need to be addressed. And I look forward to working with the current administration and all of our current upcoming leaders to solve these problems for fellow Americans,” Homberg said.

Roath also highlighted the role pharmacies play in providing health care, providing immunizations and participating in infectious disease testing as shown in the COVID-19 pandemic.

“I would remind everybody that there’s no copay to walk into your pharmacy and ask for a better insight to what health care services you are eligible and should be receiving. An ounce of prevention is worth a pound of cure as they say,” Roath said.

The Biden administration invested a large amount of taxpayer dollars into supporting pharmacies as they served as a front line against COVID-19, Becerra said. The administration is also working to change policies that make it harder for independent pharmacies to compete with big chains.

“We want to get rid of the middlemen that’re making it really difficult for some of the independent pharmacists. Right now. These PBMs, pharmacy benefit managers, that are out there that are essentially controlling the market,” Becerra said. “I say somewhat figuratively, controlling the market in how these drugs are dispensed and they’re priced.”

“We think that those middlemen who are sucking money out of the system that never actually goes to provide health care or provide medicines, really is a disservice to everybody, including the taxpayer,” Becerra said.

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