The US attacks on reducing the cost of 10 drugs for Medicare users

President Joe Biden said he wants to stop giving drug companies a “blank check”, after the government announced an agreement to significantly reduce the cost of 10 common medicines for millions of Americans.

Price cuts of between 38% and 79% will take effect in 2026, the Centers for Medicare & Medicaid (CMS) said.

They will apply to people enrolled in the Medicare program, which provides health coverage for Americans 65 and older.

The new plan is expected to cover about nine million people who use at least one drug, the Department of Health said.

At an event in Upper Marlboro, Maryland, President Joe Biden on Thursday said he no longer wants to hand over a big pharma check and described the deal as “help for the millions of adults who take these drugs to treat something else.” and another from heart failure, blood. diseases, diabetes, arthritis, Crohn’s disease, and more”.

He said the changes were part of the Affordable Care Act, passed by Democrats in 2022 as a result of Vice President Kamala Harris’ nomination, which allows Medicare to negotiate drug prices directly with manufacturers.

The public announcement of low prescription drug prices marked the first public appearance for Ms. Harris and Mr. Biden since he dropped out of the race last month.

Xavier Becerra, secretary of the United States Department of Health, said that the agreement represents the first direct negotiations between Medicare and drug companies.

“The American people are better for it,” Mr. Becerra said.

The US Department of Health has estimated that the plan would save Medicare around $6bn (£4.7bn) if implemented today, based on last year’s drug prices.

In a hypothetical example provided by the agency, a Medicare enrollee using the Crohn’s disease treatment drug Stelara, one of the 10 drugs discussed, would see their bill drop from $3,400 to $1,100 for a 30-day supply.

Medicare is a national health insurance program funded by the US government. It helps provide health care services to anyone aged 65 or over, as well as young people with certain disabilities.

For prescription drugs, patients pay additional out-of-pocket costs while Medicare helps cover part of the cost.

The Biden administration said the new discounts would save $1.5bn in out-of-pocket costs for prescription drugs by 2026.

Last year Tina Romney, 56, told the BBC that her husband last year faced an $800 prescription bill for Entresto, one of the drugs that the Biden administration -Harris brought them down.

He said knowing that costs had been reduced was a “help”. “I have a few years to get there [Medicare coverage]but now I know I don’t have to worry about the cost when I do that.”

Drugs which covers the most commonly used diabetes treatments Januvia and Jardiance, the anemic Eliquis and Xarelto and the leukemia drug Imbruvica.

Junuvia faces the steepest price cut, from $527 in 2023 to $113 in 2026.

Linda Jones, 73, who takes Junuvia, said the announcement was “a big deal, when you get older you don’t have to live your life in fear”.

However, drug makers have warned that patients will still have to pay higher out-of-pocket costs.

Eliquis maker Bristol Myers Squibb has said that the reduced price on its drug will not solve “the biggest problem of patient affordability,” which is the out-of-pocket costs imposed by health insurers. beautiful.

Johnson & Johnson, the company that makes Stelara and Xarelto, has also warned that patients will face higher costs in the end.

The pharmaceutical industry has in the past fought efforts to block price negotiations with Medicare, and has accused the Biden administration of its cost-cutting plan, arguing that it is unconstitutional.

That case was dismissed in February by a federal judge, however, marking a victory for President Biden.

The policy announcement comes as Ms. Harris, the Democratic presidential candidate, is campaigning for the White House, at a time when the high cost of living and inflation are on the minds of Americans.

Health care makes up about 8% of Americans’ spending, according to the Pew Research Center.

Education released in February by the RAND CorporationCalifornia think tank, found that drug prices in the US are three to four times higher than in 33 other countries, including the UK and neighboring Canada.