The price is not always right, but Medicare is stepping up to negotiate. The Biden administration announced Medicare’s first round of negotiated drug prices — an effort granted by the 2022 Inflation Reduction Act that targets 10 commonly used prescription medications, including Eliquis and Jardiance. Negotiations are projected to save taxpayers $6B by 2026. With soaring prescription costs, this move aims to ensure that essentials like medication don’t drain consumers’ wallets, especially for those who rely heavily on them.

• In 2022, 9M seniors spent $3.4B out-of-pocket on these medications — with individual costs exceeding $6K per year for some.
• The new negotiations are expected to slash prices by 38% to 79% compared to last year’s list prices, potentially saving Medicare enrollees $1.5B in out-of-pocket costs by 2026.

Prescription for the future: The Biden administration plans to expand price negotiations in 2025 to include up to 15 additional drugs each year, with effects starting in 2027. This could save Medicare $100B over the next decade. Despite these savings, PhRMA CEO Steve Ubl criticizes the measures, stating, “The price setting provision of the Inflation Reduction Act does nothing to benefit patients and will only harm the scientific innovation that makes the development of life-changing treatments possible.”