“The elderly are finally beginning to be relieved from high drug prices.”
The announcement marks the second time Medicare has entered into negotiations with drug companies. Medicare, supported by AARP, is the mandate given to the Prescription Drug Act of 2022, a critical health care program for seniors in the United States.
The first round of price negotiations took place last year and covered 10 prescription drugs for conditions such as diabetes, heart disease and arthritis. Lower negotiated prices for these 10 drugs are expected to save Medicare prescription drug plan members a combined $1.5 billion in out-of-pocket costs when they go into effect in 2026.
The latest list of 15 drugs selected by Medicare, along with 10 drugs that Medicare has already negotiated, represents one-third of Medicare Part D spending on prescription drugs, health officials said.
“For too long, big drug companies have inflated profits by setting exorbitant prices and forcing seniors to skip prescriptions they can’t afford, at the expense of American lives,” said AARP Executive Vice President. said Nancy Leamond, Chief Advocacy and Engagement Officer. “Medicare’s first round of drug price negotiations made clear that this process will lower prices on these important products, resulting in billions of dollars in savings for Medicare and its beneficiaries.”
Manufacturers of selected medicines have until February 28 to decide whether to participate in this year’s negotiations. As part of the Prescription Drug Act of 2022, the Centers for Medicare and Medicaid Services (CMS) plans to select up to 15 additional drug products for the third price negotiation cycle in 2026 (hospitals and clinics). This includes medications that are frequently administered at a pharmacy (including medications that are dispensed at a pharmacy and taken at home), and up to 20 more medications are added each yearly cycle thereafter.
These price negotiations and other cost-saving provisions of the AARP-backed law, including new annual caps on prescription drug copays, will benefit an estimated 3.2 million Part D enrollees and “ “People suffering from diseases like diabetes will then no longer have to choose between life-saving medicines and other basic needs,” said CMS Administrator Chiquita Brooks-Lasure. said.
“Seniors are finally starting to feel relief from high drug prices as Medicare negotiates lower prices on more drugs and establishes new out-of-pocket maximums,” said AARP’s Leamond.
