The Biden-Harris administration says it will save millions of Americans $1.5 billion in just the first year of a new program that lowers the cost of certain prescription drugs.
These drugs are used to treat heart disease, cancer, diabetes, blood clots and more.
The savings could be significant, as these negotiations cut costs between 38% and 79% for a 30-day supply.
First up are two blood clot medications: Eliquis and Xarelto — both of which do not come with the same complications as the more traditionally prescribed Warfarin. A 30 day supply of each currently costs around $520, but in 2026 — that price will be cut in more than half as each will cost closer to $200.
Even more savings will come with the three diabetes medications listed: Jardiance, Januvia, and Farxiga. According to the White House, 3.7 million Medicare enrollees used these drugs in 2023.
When these negotiations kick in in 2026, those people are expected to save the most — between 66% and 79% of their prescription cost, as each drug will go from more than $500 per month to less than $200.
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Other drugs listed include Entresto, Enbrel, Imbruvica, and Stelara.
Stacie Dusetzina is professor of health policy at Vanderbilt. She says if this price structure was enacted this year — it would have saved the Medicare program $6 billion.
"It's a pretty big deal and it's really a historic event for the government to be able to negotiate prices on behalf of all the Medicare beneficiaries," said Dusetzina.
She adds while big savings are in the works for those on Medicare, it looks like they will not be passed down to those on private insurance plans for now. Dusetzina says there's an arrangement that could change down the road.
"Now that everybody can see what a fair price look like for these drugs, and like a real price, maybe plans will be pushing more and patients will push more to get access to those lower prices even if they're not in Medicare," she said.
The White House says the savings will not stop with these 10 listed drugs. According to its release, Medicare will select up to 15 additional Medicare Part D drugs for negotiation in 2025 and 15 more Medicare Part D and B drugs in 2026, and up to 20 drugs every year after that.
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