Biden administration unveils 1st 10 drugs subject to Medicare price negotiations

Move aims to rein in the pharmaceutical industry’s ability to inflate the costs of essential medications

WASHINGTON – The U.S. administration has announced the initial list of 10 prescription drugs that will undergo direct price negotiations with Medicare.

This move aims to rein in the pharmaceutical industry’s ability to inflate the costs of essential medications.

The release of the list by the Centers for Medicare and Medicaid Services (CMS) follows legal challenges from pharmaceutical companies opposing these negotiations, mandated under the Inflation Reduction Act (IRA).

Notably, drugs like Eliquis, Xarelto, Imbruvica, Januvia, and Farxiga are also in the list.

Their manufacturer Bristol-Myers Squibb is engaged in lawsuits against the administration.

These 10 drugs collectively contribute to Medicare expenditures amounting to billions of dollars annually.

“When implemented, prices on negotiated drugs will decrease for up to 9 million seniors,” President Joe Biden said in a statement. 

“These seniors currently pay up to $6,497 in out-of-pocket costs per year for these prescriptions. In addition, the nonpartisan Congressional Budget Office reports that this will save taxpayers $160 billion by reducing how much Medicare pays for drugs through negotiation and inflation rebates.”

President Biden mentioned that these seniors presently face high out-of-pocket expenses, but these costs are anticipated to decrease.

Peter Maybarduk, head of the Access to Medicines program at Public Citizen, characterized the list’s release as a milestone in enhancing medicine affordability.

The initial group of 10 drugs must reach an agreement on negotiating reasonable prices for medications by October 1, 2023.

The scope of price negotiation will expand in the future, with increasing numbers of drugs subject to negotiation each year.

The concept of allowing Medicare to directly negotiate drug prices with pharmaceutical companies enjoys strong public support.

While empowering Medicare to negotiate is deemed a significant step, Tim Lash, president of West Health, stressed that additional reforms are necessary in light of the critical issue of exorbitant drug prices imposed by the pharmaceutical industry.

Americans pay far higher prices for prescription drugs than people in other countries, and millions in the U.S. are forced to ration their medications because they can’t afford the prescribed dosage.

According to a West Health-Gallup poll released Monday, “83% of Americans favor price negotiations between Medicare and pharmaceutical companies, including 95% of Democrats, 76% of Independents and 75% of Republicans.”