The Biden administration has struck a deal with pharma companies to cut the prices of 10 expensive drugs commonly used by older Americans on Medicare, a policy achievement that will likely become a key talking point of the Harris’ campaign.
President Joe Biden and Vice President Kamala Harris will announce details about the renegotiated ... [+]
According to the New York Times and the Associated Press, White House officials discussed the deal in a Wednesday night briefing with some outlets and claimed price cuts would result in $6 billion in savings for the taxpayer.
The renegotiated prices will also lead to $1.5 billion in cumulative savings in out-of-pocket spending for medicare enrollees, the White House said.
The deal covers 10 key drugs used to manage or treat diabetes, heart failure, blood clots, arthritis and blood cancers.
The Centers for Medicare and Medicaid Services will release the updated prices of the drugs later on Thursday, but they will only go into effect in 2026.
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According to the New York Times, the list of drugs impacted by the renegotiated prices includes diabetes medications like Januvia, Jardiance and Farxiga (the latter two are also used for treating heart failure), along with Fiasp and NovoLog insulin injections, heart failure drug Entresto and blood cancer drug Imbruvica. Also on the list are Stelara and Enbrel—which are used to treat autoimmune disorders like arthritis and Crohn's disease—along with blood thinners Eliquis and Xarelto.
President Joe Biden and Vice President Kamala Harris will appear on stage together for the first time since he dropped his reelection bid last month and endorsed her. The event is scheduled to take place in Maryland, where both are expected to tout the reduced drug prices as a major win for the administration’s Inflation Reduction Act of 2022.
Harris, as vice president, played a key role in the passage of the Inflation Reduction Act by casting the tie-breaking vote in favor of the legislation in the Senate.
“It’s 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…and it’s a relief for American taxpayers,” Biden said in a statement reported by the New York Times.
White House says deals struck to cut prices of popular Medicare drugs that cost $50 billion yearly (Associated Press)
U.S. to Announce Prices for First Drugs Picked for Medicare Negotiations (New York Times)