Biden aims to expand Medicare negotiations to lower drug prices, potentially impacting pharmaceutical profits.
From CNBC:
President Joe Biden is pushing to expand Medicare negotiations to include at least 50 prescription drugs annually, up from the current 20. These efforts are part of his State of the Union address and aim to make medicines more affordable for seniors, potentially impacting drug company profits. Biden has prioritized lowering drug prices but faces uncertainty in Congress and opposition from the pharmaceutical industry.
The Biden administration is facing legal battles with drugmakers over Medicare price negotiations. Despite early wins in court cases, the industry intends to challenge the issue all the way to the Supreme Court. The negotiation process started with 10 drugs subject to talks, with prices set to go into effect in 2026, and plans to expand negotiations for more drugs in the coming years.
Neera Tanden, Biden’s domestic policy advisor, emphasized that increasing the number of drugs negotiated by Medicare would not only save taxpayers money but also save lives by making essential treatments more affordable. The president’s proposed changes could potentially lead to billions in savings, giving seniors financial relief and improving access to necessary medications.
In addition to expanding Medicare drug negotiations, other proposed policy measures by Biden include capping copayments for generic drugs at $2, extending out-of-pocket cost caps beyond Medicare, and requiring drugmakers to pay rebates when prices rise faster than inflation. These efforts aim to make prescription medications more accessible and affordable, impacting both Medicare and private insurance plans.
Read more at CNBC: Medicare should negotiate prices for 50 drugs each year