The first-ever pricing discussions by the Medicare health-care program in the United States cover 66 million people.
The Biden administration unveiled a list of ten prescription medicines on Tuesday that will be subject to the first-ever price negotiations by the United States' Medicare health program, which covers 66 million people, including the top-selling blood thinner Eliquis from Bristol-Myers Squibb and Pfizer.
Last year, President Joe Biden signed into law the Inflation Reduction Act (IRA), which authorizes Medicare to negotiate pricing for some of its most expensive pharmaceuticals. “Today is the start of a new deal for patients,” Biden said at a White House event, adding that Americans frequently pay two to three times more for the same drugs than other countries.
Once implemented, negotiated drug prices will be reduced for up to 9 million seniors, who presently pay up to $6,497 in out-of-pocket expenditures each year for these prescriptions, according to Biden. According to him, Medicare, which primarily serves Americans 65 and older, spends twice as much for pharmaceuticals than the U.S. Department of Veterans Affairs, which currently negotiates prescription pricing.
The declaration on Tuesday kicks off the negotiating process for the ten pharmaceuticals whose increased costs will take effect in 2026. By 2031, the program intends to save $25 billion per year on medicine prices. Medicare was not allowed to negotiate pharmaceutical rates as part of its prescription drug program, which began around 20 years ago.
