Biden announces Medicare price cuts for 10 widely prescribed medications

The administration of US President Joe Biden announced Medicare price cuts Thursday for 10 widely prescribed medications.

The reduced prices involve prescribed medications for commonly treated conditions including blood clots, diabetes, heart failure, chronic kidney disease, coronary or peripheral artery disease, certain types of arthritis and blood cancers.

The move, which follows months of negotiations between Medicare and drug manufacturers, is intended to lower prices for older Americans by cutting the list price of the drugs between 38%-79%.

US taxpayers are expected to save $6 billion on prescription drug costs, while those enrolled in Medicare are expected to save $1.5 billion in out-of-pocket costs in 2026 alone, according to the White House.

"For far too long, Americans have paid more for their prescription drugs than any developed nation," it said in a statement.

"If the negotiated prices had been in effect during 2023, Medicare would have saved an estimated $6 billion," it added.

Biden said the move is "a relief for the millions of seniors" that take those drugs.

"For years, millions of Americans were forced to choose between paying for medications or putting food on the table, while Big Pharma blocked Medicare from being able to negotiate prices on behalf of seniors and people with disabilities," he said in a separate statement released by the White House.

He noted that major pharmaceutical companies continue to go to court in order to try to block lower prices for American consumers.

"But the Vice President and I are not backing down. We will continue the fight to make sure all Americans can pay less for prescription drugs and to give more breathing room for American families," he added.

Vice President Kamala Harris said she was proud to cast the tie-breaking vote in the Senate on the Inflation Reduction Act, which aimed to lower prescription drug prices.

"Every American should be able to access the health care they need, no matter their income or wealth," she said in another statement released by the White House.

Harris noted that since Biden signed the bill into law on Aug. 16, 2022, prescription drug costs have been lowered and the cost of insulin was capped at $35 a month, while premiums for seniors and people with disabilities on Medicare were lowered.

She said the administration has reached agreements with all participating drug manufacturers to lower prices for the 10 drugs selected for the Medicare price negotiation program.

The vice president added that additional prescription drugs will be selected each year as part of the Medicare drug price negotiation program.

"This includes up to 15 additional drugs covered under Medicare Part D for negotiation in 2025, up to an additional 15 Part B and Part D drugs in 2026, and up to 20 drugs every year after that," she said.

Harris noted that as attorney general of the state of California from January 2011 through January 2017, she held major pharmaceutical firms accountable for "their deceptive and illegal practices."

"The record-breaking settlements that I won – for the people – amounted to more than $7 billion against pharmaceutical companies for their unsafe and unfair tactics," she added.