Breaking news: Biden administration takes bold step to lower drug costs for seniors

Pursuing its plan to reduce prescription drug costs, the Biden administration revealed the first 10 drugs that will be part of negotiations between Medicare and drugmakers. The negotiations are part of the Inflation Reduction Act, legislation that passed last year to allow Medicare to better control skyrocketing Rx costs.

“Today is the start of a new deal for patients, so Big Pharma doesn’t just get a blank check at your expense – at the expense of the American people,” President Biden said in a speech at the White House. “On my watch, health care should be a right, not a privilege, in this country.”

Among the drugs subject to these negotiations are Eliquis and Januvia, which are commonly used to prevent blood clotting and lower blood sugar for individuals with Type 2 diabetes. All 10 drugs are among the top 50 with the highest spending for Medicare Part D, which covers prescriptions for seniors, according to CNBC.

The announcement has sparked both hope and controversy. On one hand, this could mean substantial savings for older Americans, many of whom have been struggling to afford their medications. But the pharmaceutical industry isn’t too thrilled about this shift. They’ve raised legal challenges, asserting that these negotiations infringe on their property rights and profits.

A big question: When would the new prices take effect? Unfortunately, it’s not something that will happen overnight. The drugmakers now have until October 1 to say if they’re going to take part in the negotiations. If they decline, they must pay a large tax or pull their products from both Medicare and Medicaid. The negotiations are expected to continue into summer 2024, and the prices won’t go into effect until January 2026.

Leigh Purvis from the AARP Public Policy Institute sees this as a significant first step.  “I think it’s incredibly important to keep in mind that the negotiation process is cumulative,” she said. “We could have as many as 60 drugs negotiated by 2029.”

The shift could save Medicare $98.5 billion over the next ten years and would make prescriptions more affordable, alleviating the burden on seniors.

This is a health care revolution a long time coming. What are your thoughts? Will these negotiations help you? Share your story with us here.