From Fortune Magazine:

The federal government and pharmaceutical companies are currently negotiating how much Medicare patients will pay for 10 critical and commonly-prescribed drugs for patients with cancer, diabetes, and other illnesses. Negotiations are expected to continue for months following the passage of the Inflation Reduction Act.

The discounted prices, if they come, won’t take effect until January 2026, and the drugs will only be applicable to Medicare beneficiaries. They could result in lower Medicare monthly premiums, out-of-pocket expenses for drugs, and out-of-pocket costs for patients.

Ten drugs are being renegotiated, including treatments for Type-2 diabetes, heart failure, rheumatoid arthritis, leukemia, psoriasis, and gut disorders. These yearly costs add up to over $50 billion in annual costs for Medicare.

Negotiations will continue until as late as Aug. 1, with final prices for the first batch of drugs being made public Sept. 1. The Congressional Budget Office estimates the negotiations will save Medicare $98.5 billion over the next 10 years.

Additionally, another 30 drugs will be chosen for these negotiations over the next two years, with the negotiated prices being rolled out in 2027 and 2028.



Read more: Drug price negotiations begin between government and pharma companies