HHS Announces First Round of Negotiated Prices for Medicare Drugs
The Department of Health and Human Services (HHS) announced that it reached agreements with all participating manufacturers on new negotiated, lower drug prices for the first 10 drugs selected for the Medicare drug price negotiation program that was included in the Inflation Reduction Act. The new prices will go into effect for people with Medicare Part D prescription drug coverage in 2026.
The ten drugs selected for negotiation include: (1) Eliquis, which is used for the prevention and treatment of blood clots, was reduced from $521 for a 30-day supply to $231 (a 56% reduction); (2) Jardiance, which is used to treat diabetes, heart failure, and chronic kidney disease, was reduced from $573 for a 30-day supply to $197 (a 66% decrease); (3) Xarelto, which is used to prevent and treat blood clots and reduce the risk for patients with coronary and peripheral artery disease, was reduced from $517 for a 30-day supply to $197 (a 62% reduction); (4) Januvia, which is used to treat diabetes, was reduced from $527 for a 30-day supply to $113 (a 79% reduction); (5) Farxiga, which is used to treat diabetes, heart failure, and chronic kidney disease, was reduced from $556 for a 30-day supply, to $178.50 (a 68% reduction); (6) Entresto, which is used to treat heart failure, was reduced from $628 for a 30-day supply to $295 (a 53% reduction); (7) Enbrel, which is used to treat rheumatoid arthritis, psoriasis, and psoriatic arthritis, was reduced from $7,106 to $2,355 (a 67% reduction); (8) Imbruvica, which is used to treat blood cancers, was reduced from $14,924 for a 30-day supply to $9,319 (a 38% reduction); (9) Stelara, which is used to treat psoriasis, psoriatic arthritis, Crohn’s disease, and ulcerative colitis, was reduced from $13,836 for a 30-day supply to $4,695 (a 66% reduction); and (10) Fiasp, which is used to treat diabetes, was reduced from $495 for a 30-day supply to $119 (a 76% reduction).
HHS notes that these 10 drugs are among those with the highest total spending in Medicare Part D. When the negotiated prices go into effect in 2026, HHS estimated that people enrolled in Medicare Part D are estimated to save $1.5 billion in out-of-pocket costs.
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