The Biden administration announced today the first 10 prescription drugs to be subject to price negotiations between Medicare and manufacturers, a major step in its effort to lower drug prices.
Nick Fabrizio, senior lecturer in health policy at Cornell University, says that these 10 drugs may be just the beginning and that Democrats will likely make this a key issue in upcoming elections.
“This is a landmark day! Medicare has set the price for 10 drugs sounding the alarm for drug companies. It could target 60 drugs by 2030. Centers for Medicare & Medicaid Services has released the first 10 drugs that represent over $50.5 billion dollars in part B costs. Call it negotiation or price control but the government has just furthered on its promise to lower health care costs for all Americans. It appears that Democrats will make this a central issue in the upcoming elections.
“Capping the cost of insulin for Medicare enrollees at $35 per month was the first shot across the bow. Now the government looks to specific drugs that will have a greater impact on controlling costs. The implementation of these policy changes will take time to realize and are sure to be challenged in court so we will have to see how much is saved and by when.
“While we may see the impact that this has on lowering health care costs, we will also see whether prescribing habits change to other alternatives that may provide greater reimbursement and whether these price controls hamper research and development by the pharmaceutical industry.”