The Biden-Harris administration has announced a new program that aims to lower the cost of certain prescription drugs, saving millions of Americans a total of $1.5 billion in the first year alone.
These drugs treat various conditions such as heart disease, cancer, diabetes, and blood clots.
The savings from these negotiations will range between 38% and 79% for a 30-day supply of the medications.
Initially, the focus will be on two blood clot medications, Eliquis and Xarelto, which will see their prices reduced from around $520 to closer to $200 for a 30-day supply in 2026.
Additional savings will come from three diabetes medications – Jardiance, Januvia, and Farxiga, with Medicare enrollees expected to save between 66% and 79% as the prices drop from over $500 to less than $200 per month.
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Other drugs included in the negotiations are Entresto, Enbrel, Imbruvica, and Stelara.
Prof. Stacie Dusetzina of Vanderbilt University’s health policy department stated that implementing this pricing structure earlier would have saved the Medicare program $6 billion.
Dusetzina also mentioned that while Medicare beneficiaries are set to benefit from significant savings, these reductions may not be extended to individuals on private insurance plans, at least for now.
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The White House revealed that the cost-saving measures will not be limited to the 10 listed drugs, with additional medications set to undergo negotiation in the following years.
