September 12, 2023
The Biden administration recently announced the first 10 drugs selected for the Medicare’s prescription drug price negotiation program.
The drugs, which are single-source products with no generic alternatives, are commonly used for diabetes, blood clotting, heart failure, Crohn's disease, and arthritis. The price negotiation program is a key component of the Inflation Reduction Act, but it has faced legal scrutiny from the pharmaceutical industry and the U.S. Chamber of Commerce to prevent it from moving forward.
“Affordability of prescription drugs is a challenge for many Medicare enrollees, with nearly half of all Medicare enrollees estimated to have annual incomes below $30,000 in 2019,” the federal Office of Health Policy noted in a fact sheet.
Here’s five things to know about the program from the Office of Health Policy:
Manufacturers have until October to sign agreements to participate in program. Following negotiations, CMS would publish agreed-upon negotiated prices for the selected drugs by September 1, 2024, with those prices effective January 1, 2026.
The federal Office of Health Policy provides additional insights about the selected products online.
Tags: Affordable Prescription Drugs
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