The Biden administration has recently unveiled the initial set of 10 prescription medications that will undergo price negotiations between manufacturers and Medicare, CNBC reports.
This bold step, facilitated by the Inflation Reduction Act, aims to make essential medications more affordable for the elderly population.
Inflation Reduction Act
President Joe Biden's Inflation Reduction Act, which passed in a partisan vote the previous year, empowers Medicare to address drug prices head-on.
This development is slated to take effect in 2026, promising long-awaited relief for the ballooning costs of prescription drugs that have been a pressing concern for older Americans.
Which Drugs Are Included?
The list of medications slated for negotiation includes influential drugs like Bristol-Myers Squibb's Eliquis, Johnson & Johnson's Xarelto, Merck's Januvia, and more.
Complete List:
- Eliquis - A blood-thinning drug
- Xarelto - A blood-thinning drug.
- Januvia - A drug used in the treatment of diabetes.
- Jardiance - A drug used in the treatment of diabetes.
- Enbrel - A drug used to treat rheumatoid arthritis.
- Imbruvica - A drug indicated for blood cancer treatment.
- Farxiga - A drug designed to address diabetes, heart failure, and chronic kidney disease.
- Entresto - A drug primarily prescribed for heart failure.
- Stelara - A pharmaceutical used to manage psoriasis and Crohn's disease.
- Fiasp and NovoLog - Medications intended for diabetes management.
These drugs collectively accounted for a staggering $50.5 billion in Medicare Part D prescription drug costs from June 2022 to May 2023, according to data from the Centers for Medicare and Medicaid Services (CMS).
They predominantly target critical health conditions among the Medicare population, such as diabetes, heart failure, and blood cancers.
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Reducing Medication Costs
Medicare, the federal program providing health insurance coverage to a vast majority of the elderly population, has historically lacked the authority to negotiate drug prices.
However, the tide is turning with this comprehensive effort to curb the exorbitant costs. The negotiated prices, expected to be published by September 2024, will subsequently become effective in January 2026.
Furthermore, the negotiation process will progressively expand, with 15 more drugs anticipated to undergo negotiation in 2027, followed by another 15 in 2028 and 20 more annually from 2029 onwards.
Big Pharma Responds
While hailed as a pivotal breakthrough, this transformative initiative has not escaped criticism and legal challenges from pharmaceutical giants like Merck, Johnson & Johnson, and Bristol-Myers Squibb.
NBC News reports that these companies contend that the negotiation process could impede innovation and violate constitutional rights, asserting that it might jeopardize the development of life-saving treatments.
Their concerns have sparked a series of legal battles that have the potential to escalate all the way to the Supreme Court.
The pharmaceutical industry's apprehensions stand in contrast to the optimism voiced by the Biden administration, who view the legal challenges as evidence of progress in their quest to curb drug prices.
Stay posted here at Tech Times.
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