Biden Administration's Historic Deal to Cut Medicare Drug Prices by $6 Billion, Save Enrollees $1.5 Billion

Aug 15, 2024, 09:09 AM

The Biden administration has announced a historic agreement to reduce the prices of 10 of Medicare's most popular and costliest prescription drugs. This unprecedented negotiation, part of the Inflation Reduction Act, is expected to save the U.S. government $6 billion in 2026. Additionally, Medicare enrollees are projected to save $1.5 billion in out-of-pocket costs. The agreement involves reaching price deals with all manufacturers of the selected drugs, which collectively cost $50 billion annually. This initiative aims to alleviate financial burdens on older Americans, as Medicare covers 66 million people.