10 drugs targeted for Medicare price negotiations as Biden pitches cost reductions

   President Joe Biden celebrates a new phase of his administration’s efforts to lower medical costs, by saying “we’re going to keep standing up to Big Pharma.” Officials announced the first 10 drugs targeted for Medicare price negotiations. (Aug. 29)

WASHINGTON (AP) — President Joe Biden touted the potential cost savings of Medicare’s first-ever price negotiations for widely used prescription drugs on Tuesday as he struggles to convince Americans that he’s improved their lives as he runs for reelection.

The drugs include the blood thinner Eliquis, diabetes treatment Jardiance and eight other medications. The negotiation process was authorized under the Inflation Reduction Act, which Biden signed last year, capping decades of debate over whether the federal government should be allowed to haggle with pharmaceutical companies.

Any lower prices won’t take effect for three years, and the path forward could be further complicated by litigation from drug makers and heavy criticism from Republicans.

But the effort is a centerpiece of Biden’s reelection pitch as the Democrat tries to show Americans he’s deserving of a second term because of the work he’s doing to lower costs while the country is struggling with inflation. The drug negotiations, like many of Biden’s biggest policy moves, will take time to play out, and his challenge is to persuade the public to be patient.

“For all of you out there, I get it, and millions of Americans get it,” Biden said at the White House. “I promise you. I’m going to have your back and I’ll never stop fighting for you on this issue.”

The drugs on the list announced Tuesday accounted for $3.4 billion in out-of-pocket costs for Medicare patients last year.

Currently, pharmacy benefit managers that run Medicare prescription plans negotiate rebates off a drug’s price. Those rebates sometimes help reduce premiums customers pay for coverage. But they may not directly change what a patient spends at the pharmacy counter.

The new drug price negotiations aim “to basically make drugs more affordable while also still allowing for profits to be made,” said Gretchen Jacobson, who researches Medicare issues at Commonwealth.

By Associated Press