The Biden Administration Negotiates Lower Drug Prices for Medicare Patients
Recently, the Biden administration announced a groundbreaking agreement that will reduce the list prices of 10 of Medicare’s most popular and expensive drugs. These negotiations are expected to result in significant savings for millions of older Americans who rely on these medications to manage conditions such as diabetes, blood cancers, heart failure, and blood clots.
The negotiated discounts, ranging from 38% to 79% off the list prices, were the result of months of discussions with pharmaceutical companies. While these lower prices won’t take effect until 2026, they are projected to save taxpayers $6 billion and older adults up to $1.5 billion in out-of-pocket costs.
The impacted drugs include well-known medications like Xarelto, Eliquis, Jardiance, and Januvia, which are commonly used by Medicare beneficiaries. This landmark deal marks a significant shift in the Medicare program, allowing the government to negotiate drug prices on behalf of millions of Americans for the first time.
President Joe Biden hailed the agreement as a victory for seniors and individuals with disabilities who have long struggled with high medication costs. Vice President Kamala Harris, who played a key role in passing the legislation enabling these negotiations, joined Biden in announcing the new prices.
While pharmaceutical companies attempted to block these negotiations, the Biden administration pressed forward, emphasizing the potential savings and benefits for Medicare beneficiaries. The Department of Health and Human Services is poised to select an additional 15 drugs for price negotiations next year.
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
As the Biden administration continues to tackle rising healthcare costs, these negotiations represent a significant step towards making essential medications more affordable for those who need them most.
