The Biden administration has successfully negotiated deals with pharmaceutical companies to lower the prices of 10 of Medicare's most popular and costly drugs. While specific details about the new prices are yet to be disclosed, White House officials anticipate significant savings for both U.S. taxpayers and older Americans.
According to projections, taxpayers could save $6 billion, with older Americans potentially saving around $1.5 billion on their medications. These savings are expected to impact drugs commonly used to manage conditions such as diabetes, blood cancers, heart failure, and blood clots.
The drugs affected by the negotiated prices include Xarelto and Eliquis (blood thinners) and Jardiance and Januvia (diabetes medications). Medicare spent $50 billion on these drugs last year, making this a significant development for the program that serves over 67 million older and disabled Americans.
Historically, the federal government was prohibited from negotiating drug prices with pharmaceutical companies, unlike private insurers. This landmark deal marks a departure from that norm, allowing for potential cost savings for both the government and patients.
Vice President Kamala Harris, who played a pivotal role in passing the legislation enabling these negotiations, is set to join President Joe Biden in announcing the new drug prices. The event comes as part of their efforts to address concerns about rising costs and inflation.
Despite pushback from pharmaceutical companies, the negotiations proceeded as planned, with the Centers for Medicare and Medicaid Services overseeing the process. The finalized drug prices are expected to be released soon, with implementation scheduled for 2026.
Looking ahead, the Department of Health and Human Services will have the authority to negotiate prices for an additional 15 drugs next year. Projections suggest that these negotiations could result in substantial savings for the federal government in the coming years.
As part of her economic agenda, Vice President Harris is set to unveil further plans to reduce costs and enhance incomes for the middle class. The administration's focus on addressing healthcare affordability and prescription drug prices reflects a broader commitment to improving the well-being of all Americans.
