The Biden administration announced on Thursday that negotiations with drug manufacturers have resulted in significant discounts on the list prices of 10 of Medicare’s most popular and expensive drugs. These discounts, ranging from 38% to 79%, will save taxpayers $6 billion and older adults could save up to $1.5 billion in out-of-pocket costs. The newly negotiated prices will impact drugs used for diabetes, blood cancers, and heart conditions, among others.
This landmark deal will be a focal point for Vice President Kamala Harris’ presidential campaign, as she played a key role in passing the law that allowed for these negotiations. While pharmaceutical companies tried to stop the negotiations, they are unlikely to impact the companies’ bottom lines. The news has been met with criticism from pharmaceutical officials, who argue that the costs will be spread to taxpayers in other ways, including through increased Medicare premiums.
President Biden celebrated the deal, stating that it will benefit millions of seniors and people with disabilities who have struggled with the high costs of medications. The administration plans to hold further negotiations for an additional 15 drugs next year. The details of how these calculations were made and the specifics of how the savings will be distributed were not addressed in the announcement. The Biden administration hopes that this move will help lower medical costs and provide relief to millions of Americans who rely on these medications.
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