A drug price shake-up has begun. Medicare can now negotiate with drug makers for some prescription drug prices for senior.
It will be a long process. New price announcements will kick in starting in 2026.
This price negotiation for drugs is folded into the Biden administration’s Inflation Reduction Act. But note, this has bipartisan support. It is predicted to save the government over a decade $98.5 billion.
Ten key drugs will be available after price negotiations to Americans. For example, a blood cancer drug called Imbruvica costs $17,000 a month. That is up for negotiation. Eliquis, a blood thinner, is $600 a month. Expect that to be lowered.
Here’s the timeline: Negotiations got the go-ahead to start Sept. 1. Talks will take place over the next two years. It’ll be a solid year before new prices will be announced. These new, negotiated lowered prices won’t likely hit your wallet until 2026.
Pharmaceutical companies don’t like this for many reasons, but one is that they believe it’ll cost the in research opportunities. And some of them are suing to stop this.
Now these companies have until Oct. 1 to say they don’t want to do this or they will not negotiate. And they can, but one of two things could happen. They would be taxed for that choice or completely booted from the Medicare/Medicaid system.