Among the first medications that will be the subject of price negotiations in an effort to reduce Medicare expenses are the well-known diabetic medication Jardiance and the blood thinner Eliquis.
The administration of President Joe Biden on Tuesday unveiled a list of 10 medications for which the federal government will engage in a first-ever practice: directly negotiating prescription pricing with the manufacturer, according to The Associated Press.
Along with Enbrel from Amgen, the list includes the diabetic medication Jardiance from Eli Lilly and Co. Another medication is Novartis' Entresto, which is used to treat heart failure.
According to AARP research, Medicare spent roughly $10 billion in 2020 on Eliquis. It tackles blood clots in the legs and lungs and lowers the risk of stroke in patients with atrial fibrillation, an abnormal heartbeat.
After the announcement, Biden intends to give a speech on healthcare costs from the White House. Kamala Harris, vice president, will be present with him.
Although the policy is expected to lower expenses for some patients, Republican politicians and the drug industry are suing over it. It also forms the core of the Democratic president's reelection campaign, which he is using to highlight his efforts to reduce expenses for Americans at a time when the nation has been plagued by inflation.
Negotiations by CMS
CMS aims to negotiate the lowest maximum fair price for drugs on the list released Tuesday. That could help some patients who have coverage but still face big bills like high deductible payments when they get a prescription.
Currently, pharmacy benefit managers who run Medicare prescription plans negotiate rebates off a drug's price. Those rebates sometimes help reduce the premiums customers pay for coverage. However, they may not change what a patient spends at the pharmacy counter.
According to Gretchen Jacobson, a Commonwealth researcher who specializes in Medicare issues, the current medication pricing discussions aim "to basically make drugs more affordable while still allowing for profits to be made."
Drug corporations will face steep taxes if they refuse to participate in the new negotiation process.
The pharmaceutical industry has been preparing to oppose these regulations for months. A number of lawsuits have already been filed against the plan, including ones from the pharmaceutical companies Merck and Bristol-Myers Squibb as well as PhRMA, a significant lobbying organization.
The Cost of Drugs in the US
The cost of prescription drugs in the United States is a major concern for many people. The average American spends more than $1,200 per year on prescription drugs, and that number is only going up.
There are a number of factors that contribute to high drug prices in the US, including the lack of price regulation. Unlike most other developed countries, the US government does not regulate the prices of prescription drugs. This means that drug companies are free to set whatever price they want, and they often do.
In addition, the development of new prescription drugs is a costly process. Drug companies must recoup their investment by charging high prices for their products.
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