The Biden administration said Thursday it had reached an agreement with drugmakers to lower prices The 10 most expensive prescription drugs Under Medicare.
It’s part of the federal government’s first-ever drug price talks, which it claims could help ease the financial burden of drugs. An estimated 1 in 7 adults In the United States, they have difficulty paying for drugs.
Here it is prices are negotiable For drugs based on a 30-day supply:
- Eliquis, a blood thinner from Bristol Myers Squibb and Pfizer: $231, down from $521.
- Xarelto, a blood thinner from Johnson & Johnson; $197 down from $517.
- Januvia, the diabetes drug from Merck: reduced from $527 to $113
- Jardiance, a diabetes drug from Boehringer Ingelheim and Eli Lilly: $197 down from $573.
- Enbrel, a rheumatoid arthritis drug from Amgen: reduced from $7,106 to $2,355.
- Imbruvica, a blood cancer drug from AbbVie and Johnson & Johnson: $9,319 down from $14,934.
- Farxiga, a drug for diabetes, heart failure and chronic kidney disease from AstraZeneca: reduced from $556 to $178.
- Heart failure drug Entresto from Novartis: $295 down from $628.
- Stelara, a drug for psoriasis and Crohn’s disease from J&J: reduced from $13,836 to $4,695.
- Fiasp and NovoLog, diabetes drugs from Novo Nordisk: $119, down from $495.
The low prices are the result of months of negotiations between the federal government and drugmakers over expensive drugs, including the popular blood thinner Eliquis from Bristol Myers Squibb; Imbruvica, a blood cancer treatment from AbbVie and Johnson & Johnson; and NovoLog, a diabetes drug from Novo Nordisk.
The rates won’t go into effect until 2026, but the measure is a landmark one for Medicare. The federal government has never been able to talk directly with drug manufacturers about prescription drug prices.
“This is a historic moment,” White House domestic policy adviser Neera Tanden told reporters Wednesday evening. “Millions of seniors and others on Medicare will soon see lower drug costs for some of the most common and expensive drugs that treat heart disease, cancer, diabetes, blood costs and more.”
Medicare provides health insurance to more than 65 million people in the United States
Administration officials said on Wednesday’s call that the new negotiated prices are projected to save Medicare enrollees $1.5 billion in out-of-pocket costs in the first year.
Negotiations – like It is mandated under the Inflation Reduction Act – It started in earnest in January, when Medicare introduced kick-back prices to drug manufacturers.
The $1.5 billion is in addition to savings from other provisions in the Inflation Reduction Act, including the $35 monthly cap on out-of-pocket costs for insulin and the annual cap on out-of-pocket prescription drug costs, .
The talks are also expected to save Medicare $6 billion in the first year, officials said.
Health and Human Services Secretary Xavier Becerra called Wednesday’s talks “intense.”
“I had the honor of working closely with our HHS team to oversee the negotiations,” Becerra said. “It took both sides to reach a good agreement.”
Comments were requested from all drug manufacturers involved in the negotiations.
Steve Uble, president and CEO of Pharmaceutical Research and Manufacturers of America, a drug industry trade group, said in a statement that the Biden administration was using the talks to “grab political headlines.”
“There’s no guarantee that patients will see lower out-of-pocket costs,” he said.
The administration plans to use the talks to boost Vice President Kamala Harris’ campaign against former President Donald Trump ahead of the presidential election. Harris and President Joe Biden will appear together Thursday to discuss savings from the program.
Wednesday’s call included Becerra, Tanden and Centers for Medicare & Medicaid Services Administrator Chiquita Brooks-LaSure.
Concern over the high cost of prescription drugs
A The study was published Wednesday in JAMA More than half of seniors said they were very concerned about the cost of health care and prescription drugs ahead of the election.
About 9 in 10 adults age 65 and older say they take at least one prescription drug, according to KFF, a nonprofit that researches health policy issues.
Moment Analysis from the Commonwealth FundThe nonprofit health research institute found that retail prices in the U.S. — the prices pharmacists charge patients or insurers before discounts or rebates — for 10 selected drugs were three to eight times higher than prices in other countries of similar size and wealth.
According to CMS, the 10 selected drugs together accounted for more than $50 billion, or 20%, of Medicare Part D spending from June 1, 2022, to May 31, 2023.
According to the agency, Medicare recipients spent $3.4 billion out-of-pocket for these drugs in 2022, with an average out-of-pocket cost of $6,497 per enrollee for the most expensive drugs.
The agreed 10 drugs are just the beginning: agreed prices will come into effect for 15 more drugs in 2027, followed by 15 more in 2028 and 20 more each year. Seniors may be able to save more in the next few years.
The outcome could be in jeopardy if drugmakers succeed in their bid to block the law, which has so far been unsuccessful.
“It’s a big deal that they reached an agreement with all 10 drugmakers,” Stacie Dusetzina, a professor of health policy at Vanderbilt University in Nashville, Tennessee, said in an email. “No one chose to leave Medicare and Medicaid in protest of negotiated pricing. That’s a success!”
Negotiation is limited to drugs under Medicare Part D, which covers drugs used at home.
However, in the coming years, drugs under Medicare Part B, such as chemotherapy drugs, will also be subject to negotiation.