The Biden administration on Thursday announced an agreement between Medicare and pharmaceutical companies to lower prices on 10 prescription drugs. The government says this will save about $6 billion over the prices Medicare pays for the same drugs this year. The Centers for Medicare & Medicaid Services (CMS) estimates that 8.8 million of the 54 million Americans with Medicare Part D will be taking the 10 drugs in 2023.
The discounts on the drugs compared to the 2023 list price range from 38% for the blood cancer drug Imbruvica to 79% for the diabetes drug Januvia. The negotiations were part of the Inflation Reduction Act of 2022, which President Joe Biden signed into law in August 2022.
More: Biden administration says Medicare has negotiated discounts on 10 prescription drugs
The new prices are expected to come into effect on January 1, 2026.
Which prescription drugs will have a price reduction?
The drugs affected by the price cuts treat a range of diseases, including cancer, diabetes and heart disease. The US Department of Health and Human Services expects savings of $1.5 billion in out-of-pocket costs.
Here are the drugs whose prices are scheduled to be reduced in 2026 and the percentage decrease for a 30-day supply:
CMS estimates that Americans with Medicare Part D drug coverage will spend $3.9 billion out of pocket on the ten drugs in 2023.
SOURCES Centers for Medicare and Medicaid Benefits
Contributors: Ken Alltucker
