The Biden administration released a list of 10 drugs Tuesday which it plans to negotiate lower prices for with the manufacturer–Medicare’s first ever drug price negotiations.
In total, the targeted drugs account for more than $50 billion in Medicare costs and $3.4 billion in out-of-pocket payments from Medicare enrollees. The administration aims to lower drug costs by at least 25 percent. Pharmaceutical companies that refuse to come to the negotiation table will be heavily taxed.
“There is no reason why Americans should be forced to pay more than any developed nation for life-saving prescriptions just to pad Big Pharma’s pockets,” President Joe Biden said in a statement.
Central to Biden’s reelection campaign is his work to lower prices amidst heavy inflation – though like many of his policy moves, this one will take time to have an impact, with new prices going into effect in 2026.
The List:
- Blood thinners Eliquis and Xarelto.
- Diabetes treatments Jardiance, Farxiga and Januvia.
- Entresto, a heart failure treatment.
- Enbrel, is used to treat psoriasis and arthritis.
- Imbruvica, a blood cancer treatment.
- Stelara, is used to treat psoriasis, arthritis, Crohn’s disease, and ulcerative colitis.
- Several versions of Fiasp, a fast-acting insulin.
Eliquis, used to treat blood clots and reduce stroke risk, is by far the most expensive of the target drugs, with Medicare spending in excess of $16 billion, and was used to treat 3.7 million from 2022 to 2023, per data from the Centers for Medicare & Medicaid Services (CMS).
Pharma companies have naturally pushed back against the cost reductions. The lobbying group Pharmaceutical Research and Manufacturers of America (PhRMA) responded to the Tuesday announcement, accusing the negotiations of being done for political gain. PhRMA and other drug companies have filed litigation against the administration’s plan.
