Some drug costs will be lowered by as much as 76%
If the cost of prescription has chapped you for far too long, some relief is on the way.The White House has announced that its making good on its promise to lower out-of-pocket drug costs for seniors and save money for Americans.
This historic milestone is only possible because of the Inflation Reduction Act, said President JoeBiden. We showed that major progress can be made for the American people when we work together to take on special interests, even as Big Pharma continues to go to court to try to block lower prices for consumers.
The Department of Health and Human Services (HHS) has cut deals with manufacturers for new, lower drug prices for the first 10 drugs selected for the Medicare drug price negotiation program.
This arm-twisting comes after manufacturers have steadily increased the list prices of all 10 of these drugs since they went on the market like Stelara in 2009 and Eliquis in 2012. These new prices will cut the list price of these drugs between 38% and 79%. For example, Januvia, which goes for close to $600 at all major pharmacies, will now be available for $113.
A cause for celebration
In response,Patricia Kelmar, U.S. PIRGs health care campaigns senior director, issued the following statement:
For years, the powerful drug lobby had prevented any negotiation for drug prices by the largest purchaser of medications, our Medicare program. But Congress and the president heard the pleas of patients saying that they cant just pay whatever the industry wants to charge -- drug prices are out of control.
Now, we can celebrate the first set of new lower prices for common pricey medications that patients rely on to live productive, healthy lives. And this is just the beginning. Drug price negotiation will continue every year for even more important prescription drugs. With these negotiations and this new law, we are honoring patients and being good stewards of our federal tax dollars that support Medicare.
The new prices
The new prices will go into effect for people with Medicare Part D prescription drug coverage in 2026:
|
Drug Name |
Commonly Treated Conditions |
Number of Medicare Enrollees Who Used the Drug in 2023 |
Drug List Price in 2023 for 30-day Supply |
Negotiated Price for 2026 for 30-day Supply |
Savings (%) |
|
Eliquis |
Prevention and treatment of blood clots |
3,928,000 |
$521 |
$231 |
$290 (-56%) |
|
Jardiance |
Diabetes; Heart failure; Chronic kidney disease |
1,883,000 |
$573 |
$197 |
$376 (-66%) |
|
Xarelto |
Prevention and treatment of blood clots; Reduction of risk for patients with coronary or peripheral artery disease |
1,324,000 |
$517 |
$197 |
$320 (-62%) |
|
Januvia |
Diabetes |
843,000 |
$527 |
$113 |
$414 (-79%) |
|
Farxiga |
Diabetes; Heart failure; Chronic kidney disease |
994,000 |
$556 |
$178.50 |
$377.50 (-68%) |
|
Entresto |
Heart failure |
664,000 |
$628 |
$295 |
$333 (-53%) |
|
Enbrel |
Rheumatoid arthritis; Psoriasis; Psoriatic arthritis |
48,000 |
$7,106 |
$2,355 |
$4,751 (-67%) |
|
Imbruvica |
Blood cancers |
17,000 |
$14,934 |
$9,319 |
$5,615 (-38%) |
|
Stelara |
Psoriasis; Psoriatic arthritis; Crohns disease; Ulcerative colitis |
23,000 |
$13,836 |
$4,695 |
$9,141 (-66%) |
|
Fiasp; Fiasp FlexTouch; Fiasp PenFill; NovoLog; NovoLog FlexPen; NovoLog PenFill |
Diabetes |
785,000 |
$495 |
$119 |
$376 (-76%) |
Source: CMS
These ten drugs are among those with highest total spending in Medicare Part D, according to the White Houses announcement. If the negotiated prices had been in effect during 2023, Medicare would have saved an estimated $6 billion.
When the negotiated prices go into effect in 2026, people enrolled in Medicare Part D are estimated to save $1.5 billion in out-of-pocket costs.
Photo Credit: Consumer Affairs News Department Images
Posted: 2024-08-15 16:42:37
