President Joe Biden said Thursday the deal was a “relief for the millions of seniors who take these drugs to treat heart failure, blood clots, diabetes, arthritis, Crohn’s disease and more.”

He said the changes are part of the Inflation Reduction Act, passed by Democrats in 2022 thanks to a runoff vote by Vice President Kamala Harris, which allows Medicare to negotiate drug prices directly with manufacturers.

The US Department of Health and Human Services estimates that the measure could save Medicare around six billion dollars (4.7 billion pounds) – based on last year’s drug prices – if it came into force today.

In a hypothetical example provided by the agency, a person taking the Crohn’s disease drug Stelara – one of the 10 negotiated prescription drugs – would see their bill reduced from $3,400 to $1,100 for a 30-day supply.

Xavier Becerra, secretary of the U.S. Department of Health and Human Services, said the agreement was the first direct negotiations between Medicare and pharmaceutical companies.

“The American people are better off,” Becerra said

A study published in February by the RAND Corporation, externala California-based think tank, found that drug prices in the United States are, on average, three to four times higher than in 33 other countries, including the United Kingdom and neighboring Canada.