The Biden Administration Negotiates Lower Drug Prices for Medicare Beneficiaries
Recently, the Biden administration announced a groundbreaking move that will have a significant impact on the prices of prescription drugs used by millions of older Americans. These negotiated prices will affect medications crucial for managing conditions like diabetes, blood cancers, heart failure, and blood clots.
In detailed negotiations with drug manufacturers, the administration secured discounts ranging from 38% to 79% on the list prices of 10 of Medicare’s most popular and costliest drugs. While these new prices won’t take effect until 2026, they are expected to save taxpayers $6 billion and older adults up to $1.5 billion in out-of-pocket costs annually.
Among the drugs included in these negotiations are well-known medications like Xarelto and Eliquis for blood thinning, and Jardiance and Januvia for diabetes management. This marks a significant departure from traditional Medicare practices, where the federal government was previously prohibited from negotiating drug prices with pharmaceutical companies.
Vice President Kamala Harris, who played a pivotal role in passing the legislation enabling these negotiations, will join President Joe Biden in heralding this achievement. As part of their efforts to address rising healthcare costs, Harris is set to unveil additional components of her economic agenda aimed at easing financial burdens for middle-class Americans.
Despite pushback from pharmaceutical companies and concerns about potential repercussions on patient costs, the administration remains steadfast in its commitment to driving down drug prices for Medicare beneficiaries. These negotiations represent a crucial step towards making healthcare more affordable and accessible for older Americans.
Looking ahead, the Department of Health and Human Services plans to select an additional 15 drugs for price negotiations next year, signaling continued efforts to tackle rising prescription drug costs in the United States.
Which drugs were part of the Medicare drug negotiation?
- Januvia
- Fiasp; Fiasp FlexTouch; Fiasp PenFill; NovoLog; NovoLog FlexPen; NovoLog PenFill
- Farxiga
- Enbrel
- Jardiance
- Stelara
- Xarelto
- Eliquis
- Entresto
- Imbruvica