The Biden administration reached an agreement with drugmakers to lower prices on the 10 most expensive prescription drugs under Medicare, to help older adults struggling to pay for medications. The negotiated prices are significantly lower than the list prices for drugs such as Eliquis, Xarelto, and Enbrel. While the discounts are substantial, they will not take effect until 2026. The negotiations are projected to save Medicare enrollees $1.5 billion in out-of-pocket costs in the first year, in addition to other savings from the Inflation Reduction Act.
The negotiations are historic as the federal government has never directly haggled with drugmakers over prescription drug prices. The drug industry’s trade group criticized the administration’s efforts, claiming there are no assurances patients will see lower out-of-pocket costs. The negotiations also aim to save Medicare $6 billion in the first year. Medicare recipients have expressed concern about the high cost of prescription drugs, with many older adults reporting financial worries about medical care.
In the future, negotiations will expand to include more drugs under Medicare Part D, and eventually drugs under Medicare Part B as well. The success of the negotiations could be jeopardized if drugmakers succeed in their lawsuits to block the law. Overall, the negotiations are seen as a significant step toward reducing the financial burden of prescription drug costs on older adults and Medicare recipients.
Photo credit
www.nbcnews.com
