Biden's Medicare drug price negotiations aim to save billions for patients and taxpayers
From CNBC: 2024-08-15 15:29:15
President Joe Biden and Vice President Kamala Harris attended an event on Medicare drug price negotiations in Maryland. The administration released prices for the first 10 drugs under negotiation, part of a new process to bring costs down. These talks are set to save billions for Medicare and patients starting in 2026.
The negotiations will put pressure on pharmaceutical companies as more drugs are discussed in future rounds. The pricing process will affect large companies globally, with potential savings for patients and taxpayers. The administration estimates around $6 billion in net savings for Medicare and $1.5 billion in out-of-pocket savings for beneficiaries in 2026.
As negotiations continue, more drugs will be selected for talks, leading to potential impacts on drugmakers’ revenue. Patent expirations for blockbuster medicines like Eliquis could lead to competition from generics. By 2025, the administration will select up to 15 more drugs for the next round of discussions.
Future rounds of negotiations could include top-selling drugs like Novo Nordisk’s Ozempic. CMS will only select Medicare Part D drugs for the first two rounds of negotiations, gradually incorporating more specialized drugs. There are concerns in the pharmaceutical industry regarding potential revenue cuts and the impact on innovation.
Read more at CNBC: What’s next for Biden’s Medicare drug price negotiations