Medicare Drug Price Negotiations to Save U.S. $6 Billion
The US government anticipates saving $6 billion in the first year from newly negotiated prices on 10 top-selling prescription drugs under the Medicare health program, benefiting 66 million older Americans. These negotiations, part of President Joe Biden's 2022 Inflation Reduction Act, are set to take effect in 2026. The administration hopes these savings will address public discontent over high drug prices, a significant issue ahead of the November 5 presidential election between Democratic Vice President Kamala Harris and Republican ex-President Donald Trump.
The pharmaceutical industry has opposed the Medicare negotiations, with several companies filing lawsuits against the administration. They argue that these changes might force them to scale back some drug development programs. The negotiations mark a significant shift for Medicare, which previously lacked the authority to directly negotiate drug prices.
