American seniors will save $1.5 billion in out-of-pocket drug costs thanks to newly announced prices negotiated by the Medicare program with Big Pharma. Empowered by the Inflation Reduction Act of 2022, Medicare was able to negotiate 38-79% discounts on 10 life-saving drugs that treat heart disease, diabetes, cancer, and other serious conditions. These include popular, brand name drugs such as Eliquis, Jardiance, Farxiga, and Stelara — some of the expensive and commonly prescribed medications in the Medicare program.
“It’s no exaggeration to say that this a truly historic moment. We have been advocating for Medicare to have the power to negotiate drug prices with Big Pharma since 2003, when prescription drug coverage was added to the program,” said Max Richtman, President and CEO of the National Committee to Preserve Social Security and Medicare. “Unfortunately, the law literally forbade Medicare from negotiating prices with drugmakers. The Inflation Reduction Act finally changed that.
Big Pharma wouldn’t have lowered these prices out of the goodness of their hearts. These huge savings are proof that the federal government can, and should, leverage its buying power to save everyday Americans money — in this case, delivering millions of seniors relief from punishingly high drug prices. This is momentous news for Medicare beneficiaries and the Medicare program itself.”
According to the Centers for Medicare and Medicaid Services, 8 of the 10 drugs selected for this year’s negotiation program raised their prices in 2024 – after all 10 drugs were already priced three to eight times higher in the United States than in other countries.
The newly negotiated prices will not only save seniors more than one billion dollars at the pharmacy counter; they will save the Medicare program some $6 billion in costs. The new prices take effect in January, 2026. Under the provisions of the Inflation Reduction Act, Medicare will select up to 15 more drugs covered under Part D for negotiation for 2027 by February, 2025.
“The negotiated prices of these first 10 drugs are a great start. We would like to see even more drugs included more rapidly in the negotiation process so that seniors can reap the maximum cost-savings that this process can provide,” said Richtman.
“At the same time, we applaud the Biden-Harris administration and congressional Democrats for enacting the Inflation Reduction Act, which makes the negotiation process possible. Not a single Republican voted for it. That speaks volumes as we approach the 2024 elections about which party stands with seniors and which one does the bidding of Big Pharma.”
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Media inquiries contact:
Walter Gottlieb