Tuesday, November 5

Historic agreement to lower the price of 10 drugs in the United States

The administration of President Joe Biden and Vice President Kamala Harris reached a historic agreement: the reduction of the price of the first 10 drugs to treat diabetes, cancer, arthritis and other diseases.

Nearly a year into the negotiation process under the Inflation Reduction Act, the Biden Administration has reached an agreement on Medicare drug coverage.

“My Administration is announcing that Medicare has reached agreements on new, lower prices with the manufacturers of the 10 drugs selected for the first round of negotiations,” President Biden said.

Savings for Medicare patients are estimated at $1.5 billion on prescription drugs, but for the health care system it will mean $6 billion in savings in the first year.

“It’s a relief for the millions of seniors who take these drugs to treat everything from heart failure and blood clots to diabetes, arthritis, Crohn’s disease and more, and it’s a relief for American taxpayers,” Biden added.

The law under which the negotiation was achieved was approved under the Reconciliation process, so it required the vote of Vice President Harris in 2022, something that was highlighted by the Secretary of Health, Xavier Becerra. “Without her vote [de la vicepresidenta] would not have been achieved,” the secretary said in a virtual conference.

“Today’s announcement will be life-changing for so many of our loved ones across the country, and we will not stop here,” said Vice President Harris.
He recalled that each year another package of medicines will be selected to reduce their price, as established by the Inflation Reduction Law.

“This includes up to 15 additional Medicare Part D drugs for negotiation in 2025, up to 15 additional Part B and Part D drugs in 2026, and up to 20 drugs each year thereafter,” the vice president said.

Without a Republican vote

In 2022, the Inflation Reduction Act was passed by Democrats under a process that required a simple majority in the Senate, but with the vote of the vice president.

“Advocates, health care leaders and policy leaders have worked for years, even decades, to enact this commonsense reform, which allows Medicare to negotiate drug prices,” said Neera Tanden, White House domestic policy adviser.

Tanden noted that the vote did not include any Republican votes, in a law that, however, is nationwide and will not distinguish based on political leanings.

“The president and vice president took on Big Pharma and won. Two years ago, President Biden signed the Inflation Reduction Act with the help of Congressional Democrats and with the vice president casting the tie-breaking vote in the Senate,” she said. “And they did it without the help of Congressional Republicans. Every single one of them voted against it.”

Secretary Becerra highlighted the savings that the price reduction will represent, according to the Congressional Budget Office (CBO), which will be up to $100 billion over 10 years. The first year was estimated to save $3.7 billion, but it will be more than that.

“Today we are announcing that in our first year of negotiations, we are saving Medicare $6 billion,” Becerra said. “I think it’s important to remember that all of this is a result of the Inflation Reduction Act, which also has a $35 a month insulin cap for Medicare recipients.”

The meaning of the agreement

Centers for Medicare and Medicaid Services (CMS) Administrator Chiquita Brooks-LaSure said the negotiations included several stages, as the Biden Administration had anticipated.

“This administration’s legacy for many groups and today’s announcement represents a major first in the history of American health care that has been decades in the making,” Brooks-LaSure said. “For the first time, CMS negotiated directly with pharmaceutical companies to get a better deal for Medicare. And we did. We reached agreements on all 10 drugs selected for the inaugural negotiating cycle.”

He said the drugs are for diabetes, heart disease, rheumatoid arthritis, cancer and other diseases.

“For many people, being able to afford these medications will mean the difference between a debilitating disease and living a full life,” she said. “If you have rheumatoid arthritis, for example, effective treatment prevents the disease from spreading to your organs and ensures that you don’t permanently lose the use of your hands. These negotiated prices aren’t just about cost — they’re about helping ensure that your aunt, your father, your grandfather or you can live longer and healthier lives.”

What are the medications?

The Biden Administration announced in August 2023 the selection of the first 10 drugs whose price will be reduced:

– Eliquiswhich helps prevent blood clots.
– Jardiancewhich helps with diabetes and heart failure.
– Xareltomused in the prevention and treatment of blood clots, as well as in reducing risk for patients with coronary or peripheral arterial disease.
– Januviawhich is against diabetes.
– Farxigawhich helps against diabetes, heart failure and chronic kidney disease.
– I’ll be in the middleused against heart failure.
– Enbrelwhich is against rheumatoid arthritis, psoriasis, and psoriatic arthritis.
– Imbruvicawhich supports against blood cancers.
– Stelaraagainst psoriatic arthritis, Crohn’s disease and ulcerative colitis.
– FiaspFiasp FlexTouch, Fiasp PenFill, NovoLog, NovoLog FlexPen and NovoLog PenFill, which helps against diabetes.