Medicare Unveils 10 Drugs Subject to Price Negotiations
Lower Costs, Significant Savings for Beneficiaries
Biden Administration Secures Agreements with Drugmakers
On Thursday, the Biden administration announced an agreement with drug manufacturers to reduce costs for ten widely used Medicare medications. This landmark deal is expected to provide significant savings for beneficiaries, estimated to be around $15 billion in out-of-pocket expenses.
The selected drugs represent a range of therapeutic categories, including diabetes, cancer, and cardiovascular conditions. The negotiations, conducted under the Inflation Reduction Act, mark the first time Medicare has negotiated drug prices.
Key Features of the Agreement:
- The new prices will take effect in 2023.
- The Biden administration estimates that if the new prices had been in place last year, Medicare would have saved $6 billion.
- This agreement builds on the administration's efforts to lower healthcare costs for Americans.
The administration's commitment to lowering prescription drug costs is part of a broader agenda to improve healthcare affordability. Other initiatives include allowing Medicare to negotiate prices for additional drugs in the future and capping out-of-pocket costs for certain beneficiaries.
"This agreement is a major step forward in our efforts to lower prescription drug costs for Americans," said President Biden. "We will continue to work to ensure that everyone has access to the medications they need at a price they can afford."
The agreement has been welcomed by patient advocacy groups, who have long pushed for lower drug prices. However, some industry groups have expressed concerns about the potential impact on innovation.
The Biden administration has emphasized that it remains committed to supporting innovation while also ensuring that Americans can afford the medications they need.
Additional Resources:
- Biden-Harris Administration Announces Medicare Part B Negotiated Prices for 10 Most Expensive Drugs
- Fact Sheet: Biden-Harris Administration Announces Medicare Part B Negotiated Prices for 10 Most Expensive Drugs
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