Overview

• President Biden proposes expanding Medicare's drug price negotiation program to include at least 50 drugs annually, up from the current target of 20.
• The proposed expansion aims to lower healthcare costs by allowing the federal government to negotiate prices for widely used medications treating conditions like diabetes, arthritis, heart disease, and cancer.
• Biden's plan includes extending the $2,000 cap on out-of-pocket prescription drug costs, currently set for Medicare recipients in 2025, to all Americans with private insurance.
• The administration seeks to extend a $35-per-month cost cap for insulin to the commercial market, building on similar Medicare provisions.
• The proposals require congressional action and face uncertainty in a divided Congress, with the pharmaceutical industry expected to oppose the expansion of negotiations.