Official announcements from the Centers for Medicare & Medicaid Services (CMS)

Biden Administration Announces 40% to 80% Medicare Drug Price Cuts, $1.5 Billion Savings

Aug 16, 2024, 04:11 PM

The Biden-Harris Administration has announced a historic agreement to lower the prices of ten costly prescription drugs under Medicare, marking the first time in history that Medicare has negotiated such prices. This initiative, enabled by the Inflation Reduction Act, is set to reduce drug costs by 40% to 80%, saving Medicare recipients $1.5 billion in out-of-pocket expenses and Medicare itself $6 billion in the first year. The announcement was made in Prince George's County, Maryland, and is part of a broader effort to lower healthcare costs for millions of Americans. Despite Republican opposition, the Biden-Harris Administration fulfilled its promise to lower out-of-pocket drug costs.