Medicare to negotiate drug prices with pharmaceutical companies

The U.S. Department of Health and Human Services on Tuesday listed ten medications eligible for Medicare to negotiate the price negotiations with producers. The change comes under law included in President Joe Biden’s Inflation Reduction Act, meant to make medication more financially accessible to the elderly. Biden has said lower drug prices will cut Medicare spending. Republicans have not supported the change, arguing that Medicare negotiating drug prices with private suppliers amounts to government-set pricing. Pharmaceutical manufacturers have begun lawsuits to block the process. Negotiations may begin this year, but new prices will not apply until 2026.

What drugs will have negotiable prices? HHS announced the first ten medications eligible for negotiation Tuesday morning. The list includes blood thinners Eliquis and Xeralto and diabetes medications Jardiance, Januvia, Fiasp, NovoLog, and Farxiga. Officials included the blood cancer treatment Imbruvica, Crohn’s disease drug Stelara, heart drug Entresto, and autoimmune drug Enbrel. Another 15 drugs may be selected for negotiation in 2027.

Dig deeper: Read Sharon Dierberger’s report in WORLD Magazine on pharmaceutical companies profiting from rare illnesses.