Feds announce Medicare price negotiations for 10 common medications

The Biden administration on Thursday announced landmark drug price negotiations between Medicare and pharmaceutical companies on 10 commonly used drugs (Source: “U.S. Unveils Price Limits for 10 Costly or Common Medications,” New York Times, Aug. 15).
 
According to a fact sheet released by the Centers for Medicare and Medicaid Services, the negotiated prices, which take effect in 2026, are expected to save billions of dollars for Medicare. But they will lead to direct out-of-pocket savings for only a subset of the millions of older Americans who take the drugs subject to negotiations.
 
The 10 drugs subject to negotiations include widely used blood thinners and arthritis medications. Had the new prices been in effect last year, administration officials said, Medicare would have saved $6 billion, which would have reduced its spending on those drugs by 22%.