The Centers for Medicare & Medicaid Services (CMS) has revealed the first 10 drugs targeted for Medicare price negotiations, marking a historic step in efforts to lower prescription drug costs.
"Today's announcement is a watershed moment to make lifesaving medications more affordable for millions of Americans on Medicare," Emily Gee, Senior Vice President for Inclusive Growth at the Center for American Progress, said.
In a landmark move for the U.S. healthcare system, the Centers for Medicare & Medicaid Services (CMS) announced the first ten prescription drugs subject to direct price negotiations under Medicare's new Drug Price Negotiation Program. This initiative is made possible by the Inflation Reduction Act, signed into law by President Biden, aimed at lowering prescription drug costs for millions of Americans.
"Today marks a significant and historic moment for the Medicare program with the announcement of the first drugs selected for Medicare drug price negotiation," CMS Administrator Chiquita Brooks-LaSure said. "Our goal with these negotiations is to improve access to some of the costliest drugs for millions of people with Medicare while driving competition and innovation."
The negotiations between CMS and participating drug companies will take place over the next two years, with the newly negotiated prices becoming effective in 2026.
"Promoting transparency and engagement continue to be at the core of how we are implementing the new drug law and the Medicare Drug Price Negotiation Program," Dr. Meena Seshamani, CMS Deputy Administrator and Director of the Center for Medicare said. She also announced plans for patient-focused listening sessions, slated for Fall 2023, where patients and other stakeholders can express their views on the selected drugs.
This development comes amidst ongoing legal and legislative battles, as pharmaceutical companies and their allies are suing to stop these new reforms in an effort to protect their profits.
The Biden administration sees this as a step toward strengthening the middle class by providing better protections against high healthcare costs. Through negotiation, the administration aims to counter the pharmaceutical industry's long-standing practice of charging Americans prices far exceeding what residents of other countries pay.
