Biden Administration Announces $6 Billion Savings with Medicare Drug Price Cuts for 10 Drugs

Aug 15, 2024, 10:44 AM

The Biden administration has announced a landmark agreement to lower the prices of 10 of Medicare's most expensive and frequently used drugs. This move, part of the Inflation Reduction Act, is expected to save the U.S. government $6 billion and Medicare enrollees $1.5 billion in 2026. The negotiations, which involved major pharmaceutical companies, aim to reduce the annual $50 billion cost of these drugs. The new prices will take effect in 2026, marking the first time the federal government has directly negotiated drug prices with manufacturers. The administration projects a total savings of $7.5 billion, achieving a 22% reduction in costs.