Biden-Harris Administration Negotiates Lower Prescription Drug Costs

The Biden-Harris administration announced on August 15 that it had reached an agreement with drugmakers to lower the costs of ten prescribed drugs under the Medicare program.

“For too long, Americans have paid more for prescription drugs than any developed country. Today, the Biden-Harris administration is delivering on its promise to lower drug costs for seniors and save money for Americans,“administration stated in a press release.

When the brand new prices go into effect in 2026, Medicare patients will save an estimated $1.5 billion, in line with estimates Centers for Medicare & Medicaid Services. Some of the drugs getting price cuts include diabetes drug Januvia, which will likely be priced at $197, up from $527; Bristol Myers Squibb’s anticoagulant Eliquis; and Pfizer, which will drop from $521 to $231. Enbrel, The price of the rheumatoid arthritis drug will likely be reduced from $7,106 to $2,355.

White House domestic policy adviser Neera Tanden said this “historic moment” will deliver big savings for older Americans.

“Millions of seniors and others on Medicare will soon see their drug costs fall on some of the most popular and expensive drugs used to treat heart disease, cancer, diabetes, blood costs and more.” she said on the press conference.

Negotiations, mandated by the Inflation Reduction Act, began in January.

The federal government may have until March 2025 to clarify the way it arrived on the negotiated prices, in line with the discharge. If a drugmaker refuses to barter, it is going to face a tax penalty. The penalty will likely be waived if the manufacturer withdraws its product from the Medicare program.

Pharmaceutical Research and Manufacturers in America issued a press release condemning the negotiations.

“The administration is using the IRA (Inflation Reduction Act) price-fixing program to drive political headlines.”

Under the Inflation Reduction Act, negotiated prices for 15 more medicines will come into effect in 2026, and for one more 15 medicines in 2027.