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.