The US government has struck a deal with drug firms to significantly cut the cost of 10 prescription drugs used by over-65s for conditions including diabetes and arthritis.
The price cuts of between 38% to 79% will come into effect in 2026, the Centers for Medicare & Medicaid (CMS) said.They will apply to people enrolled in the Medicare programme, which provides health coverage for Americans aged 65 and over.
The new policy is expected to cover about nine million people who use at least one of the drugs, the Department of Health said.President Joe Biden said on Thursday that the deal was a “relief for the millions of seniors that take these drugs to treat everything from heart failure, blood clots, diabetes, arthritis, Crohn’s disease, and more”. He said that the changes were part of the Inflation Reduction Act, passed by Democrats in 2022 thanks to a tie-breaker vote by Vice-President Kamala Harris, which allows Medicare to negotiate drug prices directly with manufacturers.It’s a landmark deal for the Medicare program, which provides health care coverage for more than 67 million older and disabled Americans
. For decades, the federal government had been barred from bartering with pharmaceutical companies over the price of their drugs, even though it’s a routine process for private insurers.It’s a landmark deal for the Medicare program, which provides health care coverage for more than 67 million older and disabled Americans. For decades, the federal government had been barred from bartering with pharmaceutical companies over the price of their drugs, even though it’s a routine process for private insurers.
“For years, millions of Americans were forced to choose between paying for medications or putting food on the table, while Big Pharma blocked Medicare from being able to negotiate prices on behalf of seniors and people with disabilities,” President Joe Biden said in a statement. “But we fought back -– and won The drug deals will become a focal point for Vice President Kamala Harris’ presidential campaign, especially since she cast the tiebreaking vote to pass the law. She will join Biden on Thursday to announce the drug prices, in what will be their first joint speaking appearance since she replaced him at the top of the Democratic ticket, as they both struggle to persuade voters that costs will trend down after years of above-normal inflation.
Harris is set to release part of her economic agenda on Friday in North Carolina, where she plans to detail other ways to help cut costs and boost incomes for the middle class. The pair last appeared publicly together to welcome back to the U.S. Americans detained in Russia who were freed as part of a massive prisoner swap earlier this month.
Powerful drug companies unsuccessfully tried to file lawsuits to stop the negotiations, which became law in 2022, when a Democratic-controlled Congress passed the Inflation Reduction Act (IRA), overhauling several Medicare prescription drug regulations. But executives of those companies have also hinted in recent weeks during earnings calls that they don’t expect the negotiations to impact their bottom line.
Pharmaceutical officials blasted the news from the White House, saying it will spread health care costs to taxpayers in other ways, including their Medicare premiums.
“The administration is using the IRA’s price-setting scheme to drive political headlines, but patients will be disappointed when they find out what it means for them,” Steve Uba, the president of the Pharmaceutical Research and Manufacturers of America (PhRMA). “The ironically named Inflation Reduction Act is a bad deal being forced on American patients: higher costs, more frustrating insurance denials and fewer treatments and cures for our loved ones.”
A New Era in Drug Pricing
The deal comes as part of a broader effort to address the rising costs of healthcare and prescription medications. For years, many Medicare users have faced escalating drug prices, which can strain their budgets and impact their quality of life. By negotiating lower prices for these ten crucial medications, the government aims to make healthcare more affordable and accessible.
What the Deal Entails
Under this agreement, the prices of ten high-cost drugs will be significantly reduced. While the specific drugs included in the deal have not been fully disclosed, they are expected to cover a range of treatments for chronic conditions and serious illnesses. This move is part of a larger initiative to expand price negotiations and bring down the overall cost of medications for Medicare beneficiaries.The deal represents a crucial victory for advocates who have long pushed for reforms to tackle the high costs of prescription drugs. By leveraging its purchasing power, the government is seeking to secure more favorable terms for Medicare users and set a precedent for future negotiations.
in summery
The US government has announced a major deal to lower the prices of ten essential prescription drugs for Medicare beneficiaries. This agreement is part of a broader initiative to address high drug costs and make healthcare more affordable. While the specific drugs affected have not yet been fully disclosed, the deal is expected to reduce financial strain for millions of seniors and individuals with disabilities. This move is seen as a significant victory for those advocating for lower medication prices and sets a positive precedent for future negotiations.
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