WASHINGTON — President Biden touted the potential cost savings of Medicare’s first-ever price negotiations for a group of 10 widely used prescription drugs on Tuesday.
“For all of you out there, I get it, and millions of Americans get it,” Biden said at the White House, framing the push to trim drug prices as part of his “Bidenomics” effort to lower costs for Americans struggling with inflation. “I promise you. I’m going to have your back and I’ll never stop fighting for you on this issue.”
Among the drugs on the list are the blood thinner Eliquis and diabetes treatment Jardiance. Others include Xarelto; Januvia; Farxiga, Entresto; Enbrel; Imbruvica; Stelara; and Fiasp/Novolog.
Any lower prices won’t take effect for three years, and the path forward could be further complicated by multiple lawsuits from drugmakers and heavy criticism from Republicans.
The drugs on the list accounted for $3.4 billion in out-of-pocket costs for Medicare patients last year while the program itself paid out in excess of $50 billion for the group between June 1, 2022, and May 31, according to the Centers for Medicare and Medicaid Services, or CMS.
The pharmaceutical industry has been gearing up for months to fight the new rules. The lobbying group Pharmaceutical Research and Manufacturers of America said Tuesday that the drug list announcement stemmed from “a rushed process focused on short-term political gain rather than what is best for patients.”
“Many of the medicines selected for price setting already have significant rebates and discounts due to the robust private market negotiation that occurs in the Part D program today,” PhRMA CEO Stephen J. Ubl said in a statement.
In Massachusetts, Kendalle Burlin O’Connell, CEO & President of MassBio, an industry group, said, “This is a milestone moment, but one that is clouded by open questions of the law’s legality and how CMS is implementing it. The drug price negotiation program, as enacted, will negatively impact drug discovery and innovation and ultimately patients around the world.”
For drugs on the list released Tuesday, the government aims to negotiate the lowest maximum fair price. That could help some patients who have coverage but still face big bills like coinsurance payments when they get a prescription.
Biden, aware of the industry pushback, said he was prepared to see the cost cuts through.
“Let me be clear: I am not backing down,” he said. “There is no reason why Americans should be forced to pay more than any developed nation for life-saving prescriptions just to pad Big Pharma’s pockets.”
CMS plans to meet this fall with drugmakers that have a drug on its list, and government officials say they also plan to hold patient-focused listening sessions. By February 2024, the government will make its first offer on a maximum fair price and then give drugmakers time to respond.