Medicare, the health insurance program for people over age 65, said it would begin negotiating prices on 10 drugs, part of its mandate under the Inflation Reduction Act to lower prescription prices for older Americans .
The first drugs under price negotiations include diabetes drug Jardiance, Novolog FlexPen-like insulin and heart drug Entresto, according to a statement from the US Department of Health and Human Services.
This negotiation marks the first time that Medicare has been able to negotiate drug prices for its 65 million enrollees. They come at a time when 1 in 5 senior citizens say they are skipping doses because of the cost of their medicines. While the talks are expected to lower drug costs for Medicare enrollees, the effort is facing litigation from drug makers and heavy criticism from Republican lawmakers.
AARP, an advocacy group for older Americans, called the talks “monumental”.
“The No. 1 reason seniors skip or ration their prescriptions is because they can’t afford it. This must stop,” Nancy LeMond, executive vice president of AARP, said in a statement. “Allowing Medicare to negotiate prices for these first 10 drugs will finally give American families, especially older adults, much-needed access and relief.”
10 drugs under discussion
Medicare’s first drug price talks will focus on insulin, blood thinners and more. Medicines are:
- Eliquis
- jardiant
- xarelto
- januvia
- farxiga
- Entresto
- Enbrel
- imbruvica
- Stelara
- fiasp; Fiasp FlexTouch; fiasp penfil; Novolog; Novolog FlexPen; Novolog Penfill
How much can senior citizens save on medicines?
According to the Biden administration, seniors will spend $3.4 billion out of pocket for these drugs in 2022. In total, Medicare spent about $50.5 billion on these 10 drugs through June 1, or 20% of Part D prescription drug costs. , 2022 and May 31, 2023, the Biden administration said.
President Joe Biden said in a statement released Tuesday that negotiations, as well as other pricing mechanisms authorized by the Inflation Reduction Act, could save taxpayers $160 billion by cutting Medicare spending on drugs.
“When it goes into effect, it will lower negotiated drug prices for 9 million seniors,” Biden said.
When will the lower prices take effect?
The negotiated prices will be published by September 1, 2024.
But the Biden administration said the negotiated prices for these drugs would not take effect until January 1, 2026.
Will Medicare negotiate prices on additional drugs?
Yes, the Biden administration said it would select 15 more drugs to fall under Part D for 2027, and another 15 for 2028, with the latter including drugs that fall under both Part B and Part D. Will be
In subsequent years, an additional 20 drugs will be selected annually for interactions.
Part B covers doctor visits and some outpatient medications that must be administered in a medical office. Part D has comprehensive coverage for prescriptions.
With reporting from The Associated Press.
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