The Biden administration has negotiated deals to lower prices for 10 popular Medicare drugs, saving taxpayers $6 billion and older Americans $1.5 billion. These drugs include blood thinners, diabetes medications, and treatments for heart failure, autoimmune diseases, and blood cancers.
The negotiation of drug prices became possible through the Inflation Reduction Act. The new prices, finalized by the Centers for Medicare and Medicaid Services, are projected to save $25 billion by 2031. Vice President Kamala Harris will join President Biden in announcing these new prices.
This landmark move aims to improve access to critical medications for older Americans and address the issue of high drug prices. The negotiations come as part of Biden's economic agenda, which Vice President Harris plans to unveil in North Carolina on Friday.
However, the policy has faced legal challenges from the pharmaceutical industry. The release of negotiated prices for these drugs marks the first-ever federal drug price negotiations for Medicare, and it is expected to have a significant impact on Medicare beneficiaries, saving them billions of dollars in out-of-pocket costs.
