Biden administration reaches agreement to reduce costs of expensive Medicare drugs
Top line
The Biden administration has reached an agreement with pharmaceutical companies to lower the prices of 10 expensive drugs commonly used by older Americans with Medicare insurance, a political victory that is likely to become a central theme in Harris’s campaign.
President Joe Biden and Vice President Kamala Harris will announce details of the renegotiations … (+)
Key data
According to the New York Times and the Associated Press, White House officials discussed the deal in a press conference with some media outlets on Wednesday evening, claiming the price cuts would result in $6 billion in savings for taxpayers.
The newly negotiated prices would also result in a cumulative savings of $1.5 billion in Medicare policyholders’ co-payments, the White House said.
The agreement covers ten important medicines for the treatment of diabetes, heart failure, blood clots, arthritis and blood cancer.
The Centers for Medicare and Medicaid Services will release updated drug prices later Thursday, but they won’t take effect until 2026.
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Which medications are affected?
According to the New York Times, the list of drugs affected by the renegotiated prices includes diabetes drugs such as Januvia, Jardiance And Farxiga (the latter two are also used to treat heart failure) and Fiasp And NovoLog Insulin injections, medication for heart failure Entry and blood cancer drug Imbruvica. Also on the list are Stelara And Enbrel– used to treat autoimmune diseases such as arthritis and Crohn’s disease – together with blood thinners Eliquis And Xarelto.
What you should pay attention to
President Joe Biden and Vice President Kamala Harris will appear on stage together for the first time since he abandoned his re-election bid last month and endorsed her. The event is set to take place in Maryland, where both are expected to tout reduced drug prices as a major success of the administration’s Inflation Reduction Act of 2022.
tangent
As Vice President, Harris played a key role in passing the Inflation Reduction Act by casting the deciding vote for the bill in the Senate.
Key quote
“It’s a relief for the millions of seniors who take these drugs to treat heart failure, blood clots, diabetes, arthritis, Crohn’s disease and more… and it’s a relief for American taxpayers,” Biden said in a statement reported by the New York Times.
More information
The White House says agreements have been reached to lower prices of popular Medicare drugs that cost $50 billion annually (Associated Press)
US announces prices for first drugs selected for Medicare negotiations (New York Times)
