Negotiating Lower Drug Prices Anticipated to Save Medicare Billions

Aug. 15, 2024
“In our first year of negotiations, we are saving Medicare an estimated $6 billion,” says HHS Secretary Xavier Becerra

In an August 15 press release, the Centers for Medicare and Medicaid Services (CMS) announced that the Biden-Harris Administration has reached an agreement for new, lower prices for all ten drugs selected for negotiations in anticipation of lowering prescription drug prices.

Per the news release, “These negotiated drugs are some of the most expensive and most frequently dispensed drugs in the Medicare program and are used to treat conditions such as heart disease, diabetes, and cancer. The new prices will go into effect for people with Medicare Part D prescription drug coverage beginning January 1, 2026.”

“If the new prices had been in effect last year, Medicare would have saved an estimated $6 billion, or approximately 22 percent, across the ten selected drugs,” CMS highlighted.

“Today we’re announcing that in our first year of negotiations, we are saving Medicare an estimated $6 billion, and Americans who pay out of pocket will be saving another $1.5 billion moving forward,” said the U.S. Department of Health and Human Services (HHS) Secretary Xavier Becerra in a statement.

“CMS engaged in good-faith negotiations with participating drug companies throughout the negotiation period, including through written offers, counteroffer exchanges, and three negotiation meetings for each drug,” CMS explained in a fact sheet.

Sponsored Recommendations

The Future of Storage: The Complexities and Implications in Healthcare

Join us on January 23rd to explore the future of data storage in healthcare and learn how strategic IT decisions today can shape agility and competitiveness for tomorrow.

IT Healthcare Report: Technology Insights for a Transformative Future

Explore the latest healthcare IT trends, challenges, and opportunities in AI, patient care, and security. Gain actionable insights to navigate the industry's transformation.

How to Build Trust in AI: The Data Leaders’ Playbook

This eBook strives to provide data leaders like you with a comprehensive understanding of the urgent need to deliver high-quality data to your business. It also reviews key strategies...

Quantifying the Value of a 360-Degree view of Healthcare Consumers

To create consistency in how consumers are viewed and treated no matter where they transact, healthcare organizations must have a 360° view based on a trusted consumer profile...