WASHINGTON, D.C. — A quarter of older Americans says it's difficult to pay for prescription medications.

One reason, according to AARP, is the price has increased dramatically over the last decade.

From 2006 to 2020, according to their analysis, prices for 65 brand-name drugs increased by approximately 276%.

BUILD BACK BETTER

“We can all agree prescription drugs are expensive in this country,” President Joe Biden said at a White House event on the issue earlier this week.

Biden is hoping his Build Back Better plan gets passed in Congress to address the issue.

One big change involves the possibility of price negotiation.

Currently, Medicare officials cannot negotiate drug prices for their beneficiaries.

However, the Build Back Better plan, which may be voted on by Christmas in the Senate, would allow for some price negotiation.

Democrats believe that will lower the cost of prescriptions for Americans.

SAVINGS TAKE TIME

However, the savings will take time to reach Americans

The president’s big plan only allows for 10 drugs to initially be negotiated.

The first negotiations wouldn’t take place until 2025.

Newly-launched drugs would not be eligible for negotiation and lower prices.

President Biden’s plan also calls for out-of-pocket drug costs to be capped at $2,000 for those on Medicare Part D.

However, those savings wouldn’t kick until 2024, according to the latest text of the bill.

UNINTENDED CONSEQUENCES

Could this big change by Congress have a negative impact on science?

Ed Haislmaier thinks so. Haislmaier is a policy analyst at the Heritage Foundation, a conservative think tank.

“It could limit research,” Haislmaier said.

He argues the threat of lower profits for drugs companies could limit research and the development of newer, more effective drugs for older Americans.

“Whenever you're doing work in this area, you are taking a big risk," he added. "You have to have the potential of a big payoff."

For the millions of Americans struggling to pay the bills any relief is welcomed.

WASHINGTON, D.C. — This time of the year, it can be easy to get swept away in the magic of the season.

"Everyone is out, you know, and shopping and just exploring,” said Dana Gagnon, owner of Hart and Honey, a home décor small business in southern California.

However, experts say that for those who are not careful with their holiday spending, the cold reality of 2022 could be right around the corner.

“It's easy to swipe that card, especially during the holidays,” said Rod Griffin, senior director of consumer education and advocacy for the credit reporting company Experian.

Experian recently conducted a nationwide survey, gauging where people stood with their finances nearly two years into the COVID pandemic.

“People said that COVID is still, in some cases, having some effect on their finances, but less than last year,” Griffin said.

Last year, half of those surveyed said they were stressed about their finances during the holidays. This year, that number dropped to 30%. This time around, that stress revolves more around supply issues.

“Getting the gifts for the kids and having them physically there is perhaps more stressful this year than being able to pay for them, which is an unusual circumstance,” Griffin said.

Still, the survey found that, overall, 58% of people are concerned about how much they spend during the holidays. The group most concerned: 45% of 18- to 24-year-olds, also known as Gen Z.

“That makes sense. In a way, they're typically the least established, lower incomes generally,” Griffin said.

He said that there are steps members of every generation can take now to make sure they head into the new year with their best personal financial picture.

“They're looking at ‘How do I operate in this sort of era of uncertainty in our finances and seeing things like inflation?’ seeing things like higher costs and lower supply create uncertainty in how you manage your finances,” Griffin said.

First step: work to increase savings and see where you can cut unnecessary costs.

Second suggestion: create a budget, which is a critical tool that can help keep you on the right financial track.

Finally, Griffin said, it is important to check your credit report and pay down credit card debt.

“Credit card debt tends to be the most expensive debt you have. Not the largest – that's usually people's homes – but the most expensive debt you have, because that interest adds up and you can find yourself with increasing credit card balances without actually buying anything else if you're not careful,” he said. “So, paying down the debt – credit card debt – creates more freedom in the finances.”

Some shoppers said they are taking that advice a step further by not creating credit card debt in the first place.

"I'm keeping my money in my pockets and just spending time with my family," said Cheryl Mosely, who was out shopping near Detroit.

It’s just one move taken now that can bring people closer together, while also keeping hard-earned money closer to home.

Millions of Americans have had their student loan payments paused for the past year after Congress passed several stimulus bills, allowing the pause on payments with no interest accruing. The pause has allowed many people, like Anna Garcia, to save hundreds of dollars a month and put it towards other needs during this pandemic.

“This past year really tested us in terms of finances,” said Garcia.

Garcia owes just over $99,000 in student loan debt. For the past few years, she has paid $250 a month under her repayment plan that’s based on her income. Just before the pandemic, her payments were going to nearly double as she moved into a new job role.

“I was looking at making an additional $350 per month as the pandemic was about to start and then they stopped those payment,” said Garcia. "So, that actually really saved me.”

Garcia put the $600 a month that was earmarked for student loans into saving instead, and after a few months, her fiancé had an idea for that money.

“He just kind of threw it out there like, ‘Why don’t we just go ahead and start planning the wedding?,’” Garcia recalled.

The couple had been engaged since 2019 but they didn’t have a timeline to wed because they didn't have any extra money to put towards it. However, with the $600 savings a month, in addition to their stimulus checks, they could now afford a small wedding.

“Quite frankly, with the coronavirus and all the restrictions, we wanted to keep it small. We wanted to keep it intimate,” said Garcia. "So, we saw that opportunity and we just decided to go for it.”

The couple got married on November 25, 2020, with just their closest friends and family. The wedding cost them around $8,000, almost exactly what she would’ve paid this past year in student loan repayment.

“We were able to get everything that we wanted in that wedding and everything came together so beautifully that day,” said Garcia.

After the wedding, Garcia has still been putting aside the $600 each month and continues to strategize on how to better use those dollars. She recently decided to invest the money in the stock market to hopefully grow it, and then use it to repay her student loan debt when she has to pay that again.

“Our conversation with money has definitely changed over the past year,” she said. "It’s not just about saving but making that money work for us."

Student loan debt relief over the past year gave Garcia the opportunity to marry the love of her life and potentially a better shot at paying down her student loan debt faster. For others, it’s been a lifeline to buy food or keep the lights on when jobs have been lost and new ones are hard to come by.

The student loan relief has been extended by Congress until at least Sept. 30.