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White House: Medicare drug negotiations will save $6 billion

The White House said Wednesday that price negotiations on 10 Medicare prescription drugs will save $6 billion. Photo: Bonnie Cash/UPI
The White House said Wednesday that negotiations over the prices of 10 Medicare prescription drugs will save $6 billion. Photo by Bonnie Cash/UPI | Licensed Photo

Aug. 15 (UPI) – The White House said Wednesday that negotiations with pharmaceutical companies over Medicare drug pricing had been concluded with an estimated savings of $6 billion for the first 10 drugs selected under the program.

The Biden administration said negotiations lasted six months and ended on August 1 after lawsuits from drug companies largely failed to stop the process. Agreements for lower prices for all affected drugs were signed this month.

“Now that Medicare is able to negotiate lower prescription drug prices for seniors, American taxpayers are expected to save $6 billion on these 10 drugs alone when the negotiated prices take effect,” Neera Tanden, White House domestic policy adviser, said at a press conference.

The savings, the White House said, are based on 2023 prices, if negotiations had already taken place by then. Senior administration officials said those savings would not be “significantly different” from those projected in two years.

The White House predicted that the new prices could save Medicare beneficiaries $1.5 billion in out-of-pocket costs by 2026.

“For so many people, the ability to afford these medicines will make the difference between a debilitating disease and a fulfilling life,” Chiquita Brooks-LaSure, director of the Centers for Medicare and Medicaid Services, told reporters.

“These negotiated prices are not just about cost. They are intended to help your father, your grandfather or yourself live longer and healthier.”

Last August, the White House announced the ten drugs that will be subject to negotiations. These include:

  • Eliquis from Bristol-Myers Squibb to prevent blood clots and reduce the risk of stroke.
  • Jardiance from Boehringer Ingelheim to lower blood sugar levels in people with type 2 diabetes.
  • Xarelto from Johnson & Johnson is intended to prevent blood clotting and reduce the risk of stroke.
  • Januvia from Merck to lower blood sugar levels in people with type 2 diabetes.
  • Farxiga from AstraZeneca for the treatment of type 2 diabetes.
  • Entresto from Novartis for the treatment of heart failure.
  • Enbrel by Amen for the treatment of rheumatoid arthritis.
  • Imbruvica from Abbvie for the treatment of various types of blood cancer.
  • Stelara by Janssen for the treatment of Crohn’s disease.
  • A family of insulin products from Novo Nordisk for the treatment of diabetes, including Fiasp, Fiasp FlexTouch, Fiasp PenFill, NovoLog, NovoLog FlexPen and NovoLog PenFill.

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