Medicare drug costs: Drugmakers agree to price negotiations with Biden administration
Major drugmakers have agreed to participate in Medicare price negotiations under the Inflation Reduction Act. The Biden administration aims to lower the prices of costly drugs.
Major drug companies including Johnson & Johnson, Merck and Bristol Myers Squibb have committed to participate in Medicare drug price negotiations with the federal government, the Biden administration said Tuesday.
The move is a positive step for people on Medicare, although there are still lawsuits from drug companies fighting the price negotiations. The final prices aren’t expected until 2024 and older Americans won’t see the benefits until 2026.
The Centers for Medicare and Medicaid Services named the first 10 prescription drugs subject to price negotiations under the Inflation Reduction Act a little over a month ago.
They include Eliquis and Xarelto, two blood thinners; Januvia, a diabetes drug; and Enbrel, for rheumatoid arthritis. Last year, about 9 million Medicare enrollees spent $3.4 billion out of pocket on the 10 selected drugs, according to the administration.
Under the new law, Medicare for the first time will be able to directly haggle with drugmakers over prices for the costliest medications to drive down the high cost of prescription drugs for older people.
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