Biotech
Monday, October 2nd, 2023 11:00 pm EDT
Key Points
- All drug manufacturers for the first 10 medicines chosen for Medicare drug price negotiations have agreed to take part in the talks.
- President Joe Biden’s Inflation Reduction Act has granted Medicare the authority to negotiate drug prices, marking the first time in the program’s history.
- The negotiation process will extend until August 2024, and the reduced drug prices will come into effect in January 2026.
All 10 pharmaceutical companies selected for Medicare drug price negotiations have agreed to participate, despite some having previously sued to halt the process. President Joe Biden’s Inflation Reduction Act enabled Medicare to negotiate drug prices for the first time, with the negotiations expected to conclude in August 2024, and reduced prices taking effect in January 2026. The deadline for companies to sign agreements for negotiations was Sunday, with Monday being the deadline for submitting economic and market information on their drugs. These negotiations aim to make costly medications more affordable for older Americans, with an estimated $98.5 billion in savings for Medicare over a decade. The negotiations will also help individuals enrolled in Medicare who struggle with out-of-pocket prescription drug costs.
For full original article on CNBC, please click here: https://www.cnbc.com/2023/10/02/drugmakers-agree-to-medicare-price-negotiations-whats-next.html
