First 10 drugs selected by Biden administration for Medicare price negotiations – Michigan Advance

Medicare to Negotiate Lower Prices for 10 High-Price Drugs, Benefiting Seniors and Saving Taxpayers Billions

In a move aimed at reducing healthcare costs for seniors and saving taxpayers billions of dollars, the Biden administration announced on Tuesday that Medicare will now have the ability to negotiate lower prices for 10 common high-price drugs. This initiative is expected to benefit an estimated 9 million seniors who are enrolled in Medicare and will begin to see lower prices starting in 2026.

The drugs that will be subject to negotiation include medications used to treat blood clots, diabetes, heart disease, rheumatoid arthritis, chronic kidney disease, psoriasis, blood cancers, Crohn’s disease, and ulcerative colitis. By negotiating with manufacturers, Medicare aims to lower out-of-pocket costs for enrollees and alleviate the financial burden on seniors.

The prescription drug negotiations are a direct result of last year’s Inflation Reduction Act, a comprehensive spending package that included measures to reduce prescription drug prices, subsidize climate change reduction technology, and adjust the corporate tax rate. President Joe Biden emphasized the need to address the issue of high drug prices, stating that Americans have paid more for prescription drugs than any other major economy for far too long. He further highlighted that while the pharmaceutical industry reaps record profits, many Americans are forced to make difficult choices between purchasing life-saving medications and meeting basic needs such as food and rent.

According to a report released by the U.S. Department of Health and Human Services, approximately 9 million Medicare Part D enrollees spent a total of $3.4 billion out of pocket in 2022 on the 10 drugs selected for negotiation. These drugs include Eliquis, Enbrel, Entresto, Farxiga, Imbruvica, Januvia, Jardiance, multiple Fiasp and NovoLog insulin products, Stelara, and Xarelto.

Democratic lawmakers have applauded the Biden administration’s decision to negotiate drug prices for these medications. The Inflation Reduction Act was passed by Congress in August 2022, with Democrats holding majorities in both the House and Senate at the time. Senate Majority Leader Chuck Schumer expressed his satisfaction with the outcome, stating that millions of Americans will soon benefit from lower prices on expensive and widely used prescription drugs. Senator Jon Tester of Montana emphasized that constituents should never have to choose between life-saving medication and basic necessities, and he praised the effort to lower costs.

In addition to the drug negotiation provisions, the Inflation Reduction Act also made common adult vaccines, such as shingles and TDAP, free for certain Medicare enrollees. Monthly insulin costs for Medicare beneficiaries were reduced to $35, and starting in 2025, annual out-of-pocket prescription drug costs will be capped at $2,000.

The Congressional Budget Office projects that the prescription drug provisions of the Inflation Reduction Act will reduce the federal deficit by $129 billion by 2031. Furthermore, the government plans to select an additional 15 Part D-covered drugs in 2025 for negotiation, with lower prices taking effect in 2027. Negotiations for several more Part D and Part B drugs will continue through 2029.

The ability for Medicare to negotiate lower prices for high-price drugs is a significant step towards addressing the issue of rising healthcare costs for seniors. This move is expected to provide much-needed relief to millions of Americans and contribute to long-term savings for taxpayers.

Original Story at michiganadvance.com – 2023-08-29 20:35:44