"Biden Administration Unveils Negotiated Prices for Top 10 Prescription Drugs: A $6 Billion Medicare Savings Milestone"
Biden Administration Reveals New Prices for Top 10 Drugs in Medicare Negotiations
The Biden administration is set to announce the negotiated prices for the first 10 prescription drugs under a groundbreaking Medicare initiative. This move, designed to reduce medication costs for older Americans, is expected to save Medicare approximately $6 billion by 2026, based on 2023 data.
The release of these prices, scheduled a day before the second anniversary of President Joe Biden’s Inflation Reduction Act, marks a significant step in making medications more affordable. The new prices are anticipated to save Medicare enrollees around $1.5 billion in out-of-pocket expenses by 2026.
Chiquita Brooks-LaSure, Administrator of the Centers for Medicare and Medicaid Services (CMS), emphasized the impact of these price negotiations, noting that they could transform lives by making essential drugs more accessible.
The Inflation Reduction Act, which granted Medicare the authority to negotiate drug prices directly with manufacturers, represents a historic shift in the program’s 60-year history. The Biden administration’s announcement follows a nearly year-long negotiation process and sets a precedent for future rounds of price talks.
The initial list includes:
- Eliquis (Bristol Myers Squibb) – For stroke prevention.
- Jardiance (Boehringer Ingelheim and Eli Lilly) – For Type 2 diabetes.
- Xarelto (Johnson & Johnson) – For stroke prevention.
- Januvia (Merck) – For Type 2 diabetes.
- Farxiga (AstraZeneca) – For Type 2 diabetes, heart failure, and chronic kidney disease.
- Entresto (Novartis) – For heart failure.
- Enbrel (Amgen) – For autoimmune diseases like rheumatoid arthritis.
- Imbruvica (AbbVie and J&J) – For blood cancers.
- Stelara (Janssen) – For autoimmune diseases like Crohn’s disease.
- Fiasp and NovoLog (Novo Nordisk) – Insulins for diabetes.
The administration will release the maximum fair prices for these drugs, which will be the highest amount Medicare Part D beneficiaries or plans will pay. The prices are the result of complex negotiations, including data on drug usage and financial support.
This initiative is central to the Biden administration’s strategy to curb rising drug costs in the U.S. It is anticipated to help alleviate the financial burden on Medicare recipients, who often struggle with high medication costs. However, the pharmaceutical industry has expressed strong opposition, arguing that the negotiations threaten their revenues and innovation.
The forthcoming prices will serve as a benchmark for future negotiations. CMS will select additional drugs for negotiation in subsequent rounds, with the next set of price talks beginning in 2025. The goal is to continually expand the program, potentially negotiating prices for up to 20 drugs annually by 2029.
As the negotiation process evolves, Medicare is expected to achieve significant savings, benefiting millions of older Americans and potentially setting a new standard for drug pricing in the U.S.