Medicare has made a significant announcement regarding the first 10 drugs that have been chosen for price negotiations. This marks the beginning of a historic and highly debated process that will have major implications for pharmaceutical companies, taxpayers, and patients alike.
The Selected Drugs
The drugs that have been selected for price negotiations include:
- Bristol Myers Squibb Co. BMY's blood thinner, Eliquis.
- Boehringer Ingelheim's heart failure drug, Jardiance.
- Johnson and Johnson JNJ's blood thinner, Xarelto.
- Merck & Co. Inc. MRK's diabetes drug, Januvia.
- AstraZeneca AZN's heart failure drug, Farxiga.
- Novartis AG NVS's heart failure drug, Entresto.
- Amgen Inc. AMGN's rheumatoid arthritis drug, Enbrel.
- AbbVie Inc. ABBV's blood cancer drug, Imbruvica.
- Johnson and Johnson's psoriasis treatment, Stelara.
- Novo Nordisk NVO's insulin, Fiasp.
Manufacturers of the selected drugs have until October 1st to sign agreements and participate in the program initiated by Medicare.
President Joe Biden and Vice President Kamala Harris are expected to hold an event later today to commemorate the introduction of the negotiation program. This program is a requirement under the Inflation Reduction Act of last year. However, it has faced significant opposition from various drugmakers and industry groups, resulting in at least eight lawsuits being filed against it.
According to the Congressional Budget Office, the federal government is estimated to save nearly $100 billion over the course of 10 years through this negotiation program. In future years, the program is expected to expand to include additional drugs.
These projected savings will help fund the overhaul of the Medicare prescription-drug benefit, leading to reduced costs for many enrollees at the pharmacy counter. This development has been hailed by policy experts as a positive step towards making healthcare more affordable.