President Joe Biden recently confirmed that all ten prescription drugs picked for Medicare’s inaugural price negotiations will be included in a significant move towards healthcare affordability. This groundbreaking announcement is a precursor to a considerable reduction in drug costs in the foreseeable future, signalling a political win for Biden leading up to the upcoming election.
One of the notable drugs highlighted by the White House was the blood thinner Eliquis, used by more than 3.7 million Medicare enrollees between June of the previous year and May this year, carrying an average out-of-pocket expenditure of $608 per enrollee in 2022. Diabetes treatment Jardiance also made the list, used by approximately 1.6 million enrollees, with a 2022 out-of-pocket average of $490 per user.
In a statement last August, The Centers for Medicare and Medicaid Services unveiled the first ten drugs chosen for the negotiation process, emphasizing that drug makers were given until Monday to consent to their involvement and provide pertinent manufacturer-specific data. The White House also highlighted that these ten drugs led to an expense of over $3.4 billion last year for 9 million seniors and other beneficiaries of Medicare.
Speaking from the Oval Office, Biden passionately addressed the longstanding issue, stating, “For decades, drug companies in America made record profits while big pharma worked to block Medicare from being able to negotiate lower drug prices for seniors. Americans now pay two to three times more than people in other countries for the same prescription drug made by the same company.” According to Biden, this is why his administration has chosen to intervene.
It remains uncertain how drastically the prices may decrease. However, the costs decided upon for this initial batch of drugs will be operational from 2026. Biden’s commitment to reducing prescription drug prices is a pivotal element of his reelection strategy, even amid skepticism surrounding the efficacy of his administration’s policies in mitigating health care and other everyday expenses.
Corresponding with this announcement, Biden’s reelection team declared an ad campaign to shine a light on the president’s middle-class roots and economic strategies meant for the betterment of the everyday American. However, this journey towards more affordable healthcare isn’t without its challenges, with potential lawsuits from pharmaceutical companies and anticipated criticism from Republican quarters.
In a profound closing remark, Biden emphasized, “For many Americans, the cost of one drug is the difference between life and death, dignity and dependence, hope and fear. And that’s why we’ll continue to fight to lower health care costs, and we will not stop until we finish the job.”
