Biotech
Wednesday, July 24th, 2024 6:04 pm EDT
Key Points
- Medicare Drug Price Negotiations: The first round of Medicare drug price negotiations, initiated under the Inflation Reduction Act, is nearing completion. This historic move allows Medicare to directly negotiate drug prices with manufacturers for the first time. The negotiation period ends next Thursday, and final prices for 10 selected drugs will be published by early September, taking effect in 2026. While the pharmaceutical industry argues this could impact revenue and innovation, companies like Johnson & Johnson have factored these changes into their financial forecasts. Lawsuits challenging the negotiation process are ongoing.
- Expansion of Negotiations: After this initial round, Medicare will expand its negotiations to include more drugs in future years. Starting in 2027, Medicare will negotiate prices for an additional 15 drugs, with this number increasing to 20 drugs annually from 2029 onwards. Vice President Kamala Harris, a leading Democratic candidate for president, is expected to support expanding these negotiations further if elected.
- AI Tool for Nursing Documentation: Epic Systems, Abridge, and Mayo Clinic are developing an AI-powered solution to automate nursing documentation, addressing the administrative burden that contributes to nurse burnout. Abridge’s AI technology, which has been successful in reducing documentation time for doctors, is being adapted for nurses to improve efficiency and reduce workload. Early prototypes are being tested at Mayo Clinic, with plans to extend the technology to other healthcare organizations in the future.
The Biden administration’s Medicare drug price negotiations, established under the Inflation Reduction Act, are nearing a significant milestone with negotiations for the first batch of drugs set to conclude soon. This landmark provision allows Medicare to directly negotiate prices for medications for the first time in its history, aiming to make costly drugs more affordable for older Americans. The negotiations, which began in February, involve price discussions for 10 selected drugs, including diabetes treatments and blood thinners. Final prices will be published by September and are expected to take effect in 2026. While the pharmaceutical industry views these negotiations as a threat to their revenue and innovation, companies like Johnson & Johnson have integrated the anticipated impact into their financial outlooks. Ongoing lawsuits by pharmaceutical giants like Merck and Novartis challenge the negotiation process, with mixed outcomes in the courts so far. Looking ahead, Medicare will negotiate prices for additional drugs in subsequent years, potentially expanding negotiations to 20 drugs annually starting in 2029.
In a separate development, advancements in healthcare technology are addressing nursing challenges. Epic Systems, Abridge, and Mayo Clinic are collaborating on an AI-powered tool designed to automate nursing documentation, aiming to alleviate the administrative burden that contributes to nurse burnout. Abridge, known for its AI documentation tool for doctors, is now adapting its technology for nurses to streamline note-taking and reduce workload. The new tool integrates with Epic’s healthcare software and is currently being tested at Mayo Clinic, which has identified documentation as a major pain point for its staff. The goal is to enhance efficiency and allow nurses to focus more on patient care. Early prototypes are being evaluated, with plans to extend the technology to other healthcare organizations in the future.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/07/23/healthy-returns-first-medicare-drug-price-negotiations-round-nears-end.html
