Aug. 29 (UPI) — The Biden administration unveiled the first 10 prescription medications eligible for pricing negotiations between Medicare and pharmaceutical companies. This move is part of President Joe Biden’s commitment to make prescription drugs more affordable for aging Americans. The Medicare Drug Price Negotiation Program guide was released by the Centers for Medicare & Medicaid Services in an effort to reduce the financial burden on millions of seniors.
The selected drugs cover a range of common and costly prescriptions used to treat various conditions including heart failure, blood clots, diabetes, arthritis, and Crohn’s disease. President Biden stated that implementing these negotiated drug prices could result in cost reductions for up to 9 million seniors, who currently pay up to $6,497 annually for these medications. The Congressional Budget Office predicts that this program can save taxpayers $160 billion by decreasing Medicare’s payments for drugs through negotiation and inflation rebates.
This program is funded by the Inflation Reduction Act of 2022, which grants Medicare the authority to negotiate out-of-pocket drug costs. It also includes caps on certain generic drugs and insulin prices. However, the new drug prices resulting from the negotiations will not take effect until 2026.
The initial round of negotiations includes 10 drugs that are among the top 50 prescriptions filled by seniors through Medicare Part D. These drugs are:
- Eliquis to prevent blood clotting and reduce stroke risk
- Jardiance to lower blood sugar for people with type 2 diabetes
- Xarelto to prevent blood clotting and reduce stroke risk
- Januvia to lower blood sugar for people with type 2 diabetes
- Farxiga to treat type 2 diabetes
- Entresto to treat heart failure
- Enbrel to treat rheumatoid arthritis
- Imbruvica to treat various blood cancers
- Stelara to treat Crohn’s disease
- A family of insulin products made by Novo Nordisk to treat diabetes
According to the White House, Medicare Part D enrollees paid a total of $3.4 billion for these drugs in 2022, with an average out-of-pocket expense of $6,497 per person throughout the year. Pharmaceutical companies have voiced concerns about the potential impact on profits and innovation, leading some to challenge the program’s constitutionality in court.
Despite criticisms, President Biden remains committed to making medications more affordable for Americans. His plan also addresses commercial health insurers and requires drug companies to pay rebates to Medicare when prices rise faster than inflation. Furthermore, the plan includes provisions for free vaccines, reduced costs for behavioral and mental health services, and improvements to Medicare coverage for prescription drugs. The White House assures Medicare recipients that their drug costs will continue to decrease as more reforms from the Inflation Reduction Act are implemented.
As part of his federal budget proposal for 2024, President Biden aims to extend Medicare and Social Security while reducing the deficit. This involves increasing taxes on wealthy Americans, specifically by raising the Medicare tax rate from 3.8% to 5% for those earning over $400,000 per year. The White House believes these reforms will ensure the solvency of Medicare for the next 25 years.
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