The Biden administration announced on Thursday that starting in early 2022, a significant number of senior citizens may see a decrease in the cost of certain outpatient medications.

The White House released a roster of 48 medications, including chemotherapy drugs and growth hormones for treating endocrine disorders, that have seen price hikes above the inflation rate this year. A new legislation requires pharmaceutical companies to provide rebates to the federal government for these price increases. The funds will then be allocated to reduce the cost of these drugs for Medicare recipients starting in the beginning of next year.

President Joe Biden stated on Thursday at the National Institutes of Health in Bethesda, Maryland that there has been no regulation on the steep and rapid increases in drug costs by big pharmaceutical companies. He called it what it is – a blatant exploitation of Medicare and the American citizens. However, he reassured that they are now taking action against it.

For the first time, pharmaceutical companies will be required to pay fines for outpatient medication treatments according to the Inflation Reduction Act, which was approved by Congress in the previous year. This will result in a variety of cost reductions, ranging from $1 to $2,700, for drugs that are estimated to be utilized by 750,000 elderly individuals on an annual basis, based on the White House’s calculations.

The government’s list of drugs consists of a variety of types. These include generic drugs, medications that are taken orally or through injection, and are used to treat various disorders or illnesses based on a review conducted by the American Society of Health-System Pharmacists.

The White House stated that all drugs experienced a significant increase in prices this year, with many rising by almost 20%.

According to Chiquita Brooks-LaSure, administrator for the Centers for Medicare and Medicaid, only patients who receive their medications through Medicare Part B, the government’s outpatient care program, will experience lower prices. However, the rebates are considered necessary to prevent excessive price hikes. This statement was made on Thursday in a press release.

Stephen Ubl, president of PhRMA, also known as the Pharmaceutical Research and Manufacturers of America, noted that only a few drugs satisfied the requirements for sanctions.

“It constitutes a small portion of the total number of functional medications,” he stated.

In preparation for the 2024 election, the Biden administration has implemented various measures to pressure pharmaceutical companies into reducing drug costs. Recently, the White House proposed a bold and unprecedented strategy of revoking patents for certain drugs that are priced too high for the majority of Americans.

“Oh no, we have angered Big Pharma once more,” the White House wrote on the social media platform X, formerly known as Twitter, last week, shortly after making the announcement.

The president’s campaign strategy for his reelection will focus on advocating for reduced drug costs for American citizens.

On Thursday, the U.S. Health and Human Services agency published a report that will inform their initial negotiations with pharmaceutical companies regarding the cost of Medicare’s top 10 most expensive drugs. The agency will be negotiating new prices for these drugs next year, during the midst of the presidential campaign.

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This article has been updated to reflect that the National Institutes of Health is located in Bethesda, MD, not Washington, D.C.

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Contributions were made by Tom Murphy, a writer for the Associated Press, in Indianapolis.