Biden Administration announces first 10 drugs selected for Medicare price negotiation

For the first time ever, HHS announced ten drugs selected for Medicare drug price negotiation:

• Eliquis, Bristol-Myers Squibb, is used to prevent blood clotting to reduce the risk of stroke.
• Jardiance, Boehringer Ingelheim, is used to lower blood sugar for people Type 2 diabetes. 
• Xarelto, Johnson & Johnson, is used to prevent blood clotting to reduce the risk of stroke.
• Januvia, Merck, is used to lower blood sugar for people with Type 2 diabetes.
• Farxiga, AstraZeneca, is used to treat Type 2 diabetes.
• Entresto, Novartis, is used to treat certain types of heart failure.
• Enbrel, Amgen, is used to treat rheumatoid arthritis. 
• Imbruvica, AbbVie, is used to treat different types of blood cancers. 
• Stelara, Janssen, is used to treat Crohn’s disease.
• Fiasp; Fiasp FlexTouch; Fiasp PenFill; NovoLog; NovoLog FlexPen; NovoLog PenFill, insulins, Novo Nordisk             

[Read more: AAM report: Middlemen increasingly block patient access to new generics]

In announcing the 10 drugs, the Biden Administration said, "For far too long, Americans have paid more for prescriptions drugs than any major economy. But now, thanks to the Inflation Reduction Act, Medicare can directly negotiate prescription drug prices to get a better deal for seniors. Today, Medicare has for the first time selected 10 drugs for negotiation.  Seniors paid $3.4 billion in out-of-pocket costs for these drugs in 2022," the Administration said, adding, "Big Pharma has long fought this progress. Their profits grew as they spent more on stock buybacks and dividends than they spent on research and development, even as nearly three in 10 Americans struggle to afford their medications because of cost."

The Administration also noted, "Today, the Biden-Harris Administration is delivering on another significant milestone in implementing President Biden’s historic law to lower health care and prescription drug costs and ushering in a new era for American seniors. Over the next 4 years, Medicare will negotiate prices for up to 60 drugs covered under Medicare Part D and Part B, and up to an additional 20 drugs every year after that." 

"These ten drugs are among those with highest total spending in Medicare Part D. Millions of Part D enrollees depend on these vital treatments to treat life-threatening conditions including diabetes, heart failure, and cancer, but many struggle to access their medications because of prohibitive costs," the Administration said.

The Administration also noted that Medicare drug price negotiation will result in lower out-of-pocket costs for seniors and will save money for American taxpayers. Negotiations for the first group of selected drugs will begin in 2023, with negotiated prices going into effect in 2026.

[Read more: AAM applauds Consolidated Appropriations Act of 2023] 

The HHS also released a report showing that 9 million Medicare Part D enrollees took the drugs covered under Part D selected for negotiation and paid a total of $3.4 billion in out-of-pocket costs for these drugs in 2022.  For enrollees without additional financial assistance, average annual out-of-pocket costs for these drugs were as high as $6,497 per enrollee in 2022.