The Biden administration and the pharmaceutical industry have wrapped up the first round of landmark drug price negotiations after engaging in talks that may lead to lower prices for some of Medicare's most widely used drugs.
For the past six months, the U.S. government and drugmakers bargained largely outside the public's view over the prices of 10 prescription drugs selected for the Medicare Drug Price Negotiation Program. The program is a signature element of President Joe Biden's Inflation Reduction Act that, for the first time, authorizes the government to set the prices for some of the costliest drugs in the Medicare program.
The Centers for Medicare & Medicaid Services is slated to announce the negotiated prices—dubbed the maximum fair prices—by September 1. The prices will go into effect in January 2026.
This is important news for many seniors because the negotiated prices could significantly affect their wallets. Widely used blood thinners from Bristol Myers Squibb Co. and Johnson & Johnson, along with diabetes treatments from AstraZeneca PLC and Merck & Co., were among the drugs selected for price cuts.
