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Biden and Harris Announce Major Medicare Drug Price Cuts

New agreements set to save Medicare billions while facing criticism over potential impacts on innovation.

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These are 3 of 10 prescription drugs that will be subject to Medicare price negotiations under the Inflation Reduction Act. The other drugs include Entresto, Jardiance, Enbrel, Januvia, Imbruvica, Stelara and Fiasp.

Overview

  • The Biden administration revealed new negotiated prices for the first 10 drugs under Medicare, effective in 2026.
  • These price reductions are projected to save Medicare $6 billion and cut out-of-pocket costs for seniors by $1.5 billion.
  • Critics argue that the price cuts could stifle pharmaceutical innovation and reduce investment in new drug development.
  • The Inflation Reduction Act enabled these negotiations, marking a significant policy achievement for the Biden-Harris administration.
  • Future rounds of negotiations are expected to include more drugs, with additional savings anticipated over time.