October 13, 2023
Medicare’s Negotiations of Drug Prices
The cost of prescription drugs in the U.S. is notoriously high. A recent report noted that drug costs in the U.S. are 256% higher than in 32 comparison countries combined. Fortunately, as a result of the Inflation Reduction Act of 2022, Medicare will be able to begin negotiating prices for certain medications directly with participating drug companies. Recently, the manufacturers of the first 10 prescription drugs selected for Medicare’s first price negotiations have agreed to participate in negotiations with Medicare, clearing the way for talks that could lower costs in the coming years. The drugs include the blood thinner Eliquis and diabetes treatment Jardiance which out-of-pocket costs hovered around $600 and $500, respectively.