WASHINGTON (dpa-AFX) - The U.S. Department of Health and Human Services announced that it has reached agreements with all participating manufacturers on new negotiated, lower drug prices for the first 10 drugs selected for the Medicare drug price negotiation program.
After manufacturers have steadily increased the list prices of all 10 of these drugs since they went on the market, the successful negotiations will result in reducing their price between 38 and 79 percent, according to HHS.
The new prices will go into effect for people with Medicare Part D prescription drug coverage in 2026, and beneficiaries enrolled in the scheme are estimated to save $1.5 billion in out-of-pocket costs.
The ten drugs that are goig to be available for lower prices are Eliquis, for prevention and treatment of blood clots; Jardiance, for diabetes, heart failure and chronic kidney diseas; Xarelto, for prevention and treatment of blood clots and reduction of risk for patients with coronary or peripheral artery disease; Januvia, for diabetes; Farxiga, for diabetes, heart failure and chronic kidney disease; Entresto, for heart failure; Enbrel, for heumatoid arthritis, psoriasis and psoriatic arthritis; Imbruvica, for blood cancers; Stelara, for psoriasis, psoriatic arthritis, crohn's disease and ulcerative colitis; and Fiasp; Fiasp FlexTouch; Fiasp PenFill; NovoLog; NovoLog FlexPen; NovoLog PenFill, all for diabetes.
Millions of Part D enrollees that depend on these treatments to treat life-threatening conditions including diabetes, heart failure, and cancer are also expected to see lower out-of-pocket costs for these drugs. For example, a Medicare enrollee who takes Stelara for their arthritis and pays $3,459 on their drug today for a 30-day supply would pay only $1,174 in 2026. Many seniors and people with disabilities on Medicare who take these drugs will also benefit from the Inflation Reduction Act's $2,000 cap on out-of-pocket spending, which will be fully in effect in 2025, saving 19 million beneficiaries an average of $400 per year, in addition to these savings from the negotiated drug prices.
HHS said that more drugs will be selected by the Centers for Medicare & Medicaid Services each year as part of Medicare's drug price negotiation program. Medicare will select up to 15 additional drugs covered under Part D for negotiation in 2025, up to an additional 15 Part B and D drugs in 2026, and up to 20 drugs every year after that.
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