The Biden administration has announced agreements with drug manufacturers that will keep prices of 10 widely used drugs low, a move that is expected to save Medicare $6 billion throughout the next year.
The administration released the prices from the negotiations between drugmakers and Medicare on Thursday in a move to keep medications more affordable for older Americans, who the administration estimates will save “$1.5 billion in out-of-pocket costs for their prescription drugs.”
However, those savings won’t be seen until 2026, when the agreement from the negotiations goes into effect. The savings were also estimated based on what the prices would have produced if they were in effect in 2023, a senior administration official shared on Wednesday.
“For so many people, being able to afford these drugs will mean the difference between debilitating illness and living full lives,” Chiquita Brooks-LaSure, the administrator for the Centers for Medicare and Medicaid Services, said Wednesday.“These negotiated prices. They’re not just about costs. They are about helping to make sure that your father, your grandfather, or you can live longer, healthier.”
President Biden referred to the negotiations as a “historic milestone” made possible because of his Inflation Reduction Act, which was signed two years ago.
Vice President Kamala Harris commented on the negotiations, saying that the move would be “life-changing” for Medicare members across the country.
The 10 drugs to see their prices negotiated include the following:
—Eliquis, a Bristol Myers Squibb drug used to prevent blood clotting and fight stroke.
—Enbrel, an Amgen drug used to treat autoimmune diseases.
—Entresto, a Novartis drug that helps treat heart failure.
—Farxiga, an AstraZeneca Type 2 diabetes drug that is also used to fight heart failure and chronic kidney disease.
—Fiasp and NovoLog, insulins made by Novo Nordisk.
—Imbruvica, an AbbVie and J&J drug used by patients with some blood cancers.
—Januvia, a Merck Type 2 diabetes drug.
—Jardiance, made by Boehringer Ingelheim and Eli Lilly and used by those with Type 2 diabetes.
—Stelara, a Janssen drug used to treat autoimmune diseases.
—Xarelto, a Johnson & Johnson drug used to prevent blood clotting and to reduce the risk of stroke.
“We showed that major progress can be made for the American people when we work together to take on special interests, even as Big Pharma continues to go to court to try to block lower prices for consumers,” Biden said in a statement. “But the Vice President and I are not backing down. We will continue the fight to make sure all Americans can pay less for prescription drugs and to give more breathing room for American families.”