Biden Administration Secures Medicare Drug Price Cuts, Saving $6 Billion

Aug 15, 2024, 06:16 PM

The Biden administration has successfully negotiated price reductions for 10 of the most expensive drugs covered by Medicare, marking a historic first for the program. These negotiations are expected to save Medicare $6 billion in 2026, with enrollees saving $1.5 billion in out-of-pocket costs. The price cuts, ranging from 38% to 79%, are part of the Inflation Reduction Act's provisions aimed at reducing healthcare costs for seniors. The selected drugs, which cost $50 billion yearly, are used to treat conditions such as cancer, heart disease, and diabetes, benefiting approximately 9 million seniors in the United States. This initiative underscores the administration's commitment to tackling high drug prices and easing the financial burden on older Americans.