Medicare has successfully negotiated drug prices for 10 higher-priced drugs with pharmaceutical manufacturers. These new prices will take effect in 2026. The drugs include Janssen Biotech’s Stelara, Janssen Pharm’s Xarelto, Bristol Myers Squibb’s (BMY) Eliquis, Novartis’ (NVS) Entresto, Pharmacyclics’ Imbruvica, Merck’s (MRK) Januvia, Novo Nordisk’s (NVO) Fiasp, AstraZeneca’s (AZN) Farxiga, Immunex’s Enbrel, and Boehringer Ingelheim’s Jardiance.

Dr. Meena Seshamani, deputy director of the Center for Medicare and Medicaid Services and director of the Center for Medicare, joins Yahoo Finance health reporter Anjalee Khemlani to discuss this groundbreaking finding.

Seshamani stressed that the negotiations were conducted in good faith, taking into account clinical benefits and the input of clinical pharmacists and drug pricing experts. The goal is to set fair drug prices for all parties involved. She estimates that the new prices will save the Medicare program $6 billion and that Medicare beneficiaries who pay for prescription drugs will save $1.5 billion.

“Transparency is very important and I think that was the main goal in launching this program,” Seshamani told Yahoo Finance. She emphasized the inclusive approach that involves patients, health care providers, drug plans and companies and provides “lots of opportunities” for stakeholders to comment on CMS’s guidance and negotiate “access and affordability for the kinds of innovative remedies and therapies that people need.”

Seshamani concludes: “I think today’s outcome of the negotiating programme really shows the thoughtful and pragmatic approach that has gone into putting this programme together and that this will continue to be the case in the future.”

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This article was written by Angel Smith