The first round of Medicare drug price negotiations will save about $6 billion, according to the Biden administration.
Six months of negotiations for the first 10 drugs chosen under the program ended Aug. 1 and agreements were reached for all drugs, according to White House officials.
“Because Medicare is now able to negotiate lower prescription drug prices for seniors, American taxpayers are expected to save $6 billion on these 10 medications alone when the negotiated prices take effect,” said Neera Tanden, Policy Advisor inside the White House, in a briefing.
The figure was based on potential savings that would have occurred if negotiated prices were in effect in 2023. Senior White House officials said they do not expect savings in 2026 to be “materially different” from those estimates. Of this amount, Medicare enrollees are predicted to save $1.5 billion when prices take effect in 2026.
The drugs were chosen because they are among the largest gross costs covered for Part D prescription drugs, estimated at $50.5 billion. The chosen medicines treat diseases such as heart failure, diabetes, rheumatoid arthritis and blood cancer.
Health and Human Services Secretary Xavier Becerra praised how the program surpassed initial estimates.
“The Congressional Budget Office predicted a savings of $100 billion over 10 years from these drug deals, and they predicted or predicted a savings of at least $3.7 billion in the first year alone. Today, we are announcing that in our first year of negotiations, we are saving Medicare $6 billion,” he said.
“The negotiations were comprehensive. They were intense. It took both sides to reach a good agreement,” Becerra said. “All pharmaceutical companies agreed to participate. They had the opportunity to present their own price proposals and to make counter-offers during the negotiation. After much back and forth, we either accepted an offer or one company accepted our offer. In Ultimately, we reached agreement on all 10 medications.”
Chiquita Brooks-LaSure, Administrator of the Centers for Medicare and Medicaid Services (CMS), proclaimed that the administration “met all of our goals” in the negotiation process.
“These negotiated prices are not just about cost. They are about helping ensure that your aunt, dad, grandparent or you can live longer and healthier lives. Today is an important day,” said Brooks-LaSure.
The negotiations were marked by a series of actions filed by the pharmaceutical industry, seeking to stop the process and make it unconstitutional. During negotiations, several of these lawsuits were dismissed or federal judges ruled in favor of the government.
President Biden and Vice President Kamala Harris are expected to comment on the end of negotiations on Thursday.
This story originally appeared on thehill.com read the full story
