Article Summary –
The Biden-Harris administration announced new, lower prices for 10 widely-used and expensive drugs, projected to save Medicare around $6 billion and seniors about $1.5 billion in out-of-pocket costs in 2026, with price reductions ranging from 38% to 79%. This initiative, part of the Inflation Reduction Act, faces legal challenges from the pharmaceutical industry, which argues that the negotiations are unconstitutional and could jeopardize future cures. Despite these challenges, the program has already survived several court cases and aims to continue lowering drug prices for additional medications in the coming years.
The Biden-Harris administration announced new, lower prices for 10 expensive drugs selected for negotiations under the Inflation Reduction Act.
The negotiations are expected to save taxpayers $6 billion in 2026. Drug prices will be 38% to 79% lower than last year’s list prices, saving seniors an estimated $1.5 billion in out-of-pocket costs.
The drugs include blood thinners Eliquis and Xarelto, diabetes drugs Jardiance, Januvia, and Farxiga.
Also included are heart failure treatment Entresto, rheumatoid arthritis drug Enbrel, blood cancer treatment Imbruvica, anti-inflammatory medicine Stelara, and Novo Nordisk’s insulins Fiasp and NovoLog.
The White House estimates that these new prices will lead to around $6 billion in savings for the Medicare program in 2026. The new prices will be anywhere from 38% to 79% lower than the drugs’ list prices last year, saving seniors on Medicare an estimated $1.5 billion in out-of-pocket costs in 2026 alone. (Graphic by NBC News)
For Fiasp and NovoLog, prices are 79% and 76% cheaper than their 2023 list prices; these drugs benefit 843,000 and 785,000 Medicare Part D enrollees respectively.
“For so many people, being able to afford these drugs will mean the difference between debilitating illness and living full lives,” said Chiquita Brooks-LaSure, administrator for CMS. “These prices are about helping your father, grandfather, or you live longer, healthier.”
This announcement coincides with the second anniversary of the Inflation Reduction Act (IRA). The IRA authorized Medicare to negotiate these prices for the first time.
President Biden called these prices a “historic milestone” made possible by the IRA, which Kamala Harris cast the tie-breaking vote for in the Senate in 2022.
“Today’s announcement will be life-changing for many, and we are not stopping here,” Harris stated. Additional drugs will be selected for future negotiations.
Another 15 drugs will be selected for negotiation in 2027, with 15 more in 2028, and 20 more each year afterwards.
Merith Basey, executive director of Patients For Affordable Drugs, said, “Medicare has ushered in a new era of affordability by negotiating lower prices for 10 expensive drugs.”
Leslie Dach, Protect Our Care Chair, added, “These prices symbolize new hope for patients forced to choose between health and financial stability.”
Despite successes, negotiations have faced pushback from the pharmaceutical industry. Companies like Merck have filed lawsuits, calling the initiative unconstitutional and defending high prices.
The Medicare drug price negotiation program survived its first court challenge by a drugmaker, and another federal judge recently dismissed a US Chamber of Commerce lawsuit against the law.
Other legal proceedings remain ongoing.
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