Negotiating Lower Drug Prices Anticipated to Save Medicare Billions
In an August 15 press release, the Centers for Medicare and Medicaid Services (CMS) announced that the Biden-Harris Administration has reached an agreement for new, lower prices for all ten drugs selected for negotiations in anticipation of lowering prescription drug prices.
Per the news release, “These negotiated drugs are some of the most expensive and most frequently dispensed drugs in the Medicare program and are used to treat conditions such as heart disease, diabetes, and cancer. The new prices will go into effect for people with Medicare Part D prescription drug coverage beginning January 1, 2026.”
“If the new prices had been in effect last year, Medicare would have saved an estimated $6 billion, or approximately 22 percent, across the ten selected drugs,” CMS highlighted.
“Today we’re announcing that in our first year of negotiations, we are saving Medicare an estimated $6 billion, and Americans who pay out of pocket will be saving another $1.5 billion moving forward,” said the U.S. Department of Health and Human Services (HHS) Secretary Xavier Becerra in a statement.
“CMS engaged in good-faith negotiations with participating drug companies throughout the negotiation period, including through written offers, counteroffer exchanges, and three negotiation meetings for each drug,” CMS explained in a fact sheet.
