08/28/2023

What to Know About Drug Price Negotiations

These negotiations could save U.S. taxpayers billions

Some of the most widely used drugs in the U.S. may be heading for lower prices under Medicare, a move that could save taxpayers billions of dollars and squeeze profits for big pharmaceutical companies.

The U.S. government is preparing to release a list this week of 10 drugs that the health program for the elderly will be able to negotiate prices for — one of the key elements of President Joe Biden's signature Inflation Reduction Act. Analysts expect Johnson & Johnson's Xarelto blood thinner and Eli Lilly & Company's Jardiance for diabetes to be among the medications chosen.

The ability for the government to haggle over prices is a marked change for pharma companies that have long been able to charge whatever they think a medication is worth, even as most other industrialized companies bargain hard. With the IRA now enabling Medicare to come to the table over products that have long been on the market, drugmakers are girding for the prospect of lower revenue from some of their biggest sellers.

Please select this link to read the complete article from TIME.