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.
Sign up for Kiplinger’s Free E-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
-
Stock Market Today: Stocks Rally Despite Rising Geopolitical TensionThe main indexes were mixed on Tuesday but closed well off their lows after an early flight to safety.
-
What's at Stake for Alphabet as DOJ Eyes Google's ChromeAlphabet is higher Tuesday even as antitrust officials at the DOJ support forcing Google to sell its popular web browser. Here's what you need to know.
-
What You Should Know About Spousal IRAsWithout spousal IRAs, you would need an earned income to contribute to your retirement account.
-
How Preferred Stocks Can Boost Your Retirement PortfolioHigher yields, priority on dividend payments and the potential for capital appreciation are just three reasons to consider investing in preferred stocks.
-
What's Hurting Retirees' Confidence?Retirees aren't feeling that confident about their financial health.
-
What to Do as Soon as Your Divorce Is FinalDon't delay — getting these tasks accomplished as soon as possible can help you avoid costly consequences.
-
Many Older Adults Lack Financial Security: What Can We Do?Poor financial literacy and a lack of foresight have led to this troubling reality. It's going to take tax policy changes, education and more to address it.
-
Winning Investment Strategy: Be the Tortoise AND the HareConsider treating investing like it's both a marathon and a sprint by taking advantage of the powers of time (the tortoise) and compounding (the hare).
-
Is a 55+ Community Right for You?Before you sign on the dotted line, consider HOA fees and community culture.
-
How SEPP 72(t) Can Help You Retire Early and Dodge PenaltiesCool, right? This early retirement hack lets you tap your retirement savings without tax penalties. But it's a risky move if you don't plan well.
