It has managed to negotiate massive discounts on ten prescription drugs for the elderly that will be between 38% and 79% lower in the year 2026. The initiative has been broken down by the Centers for Medicare & Medicaid Services (CMS) in a bid to help about nine million people on Medicare.
US President Joe Biden referred to the agreement as a ‘life-changing’ solution for millions of people with diabetes, heart difficulties, and arthritis, among other conditions. This form of agreement was brought about with the passage of the Inflation Reduction Act of 2022, which amends the Medicare System in that it enables Medicare to directly contract drug prices with manufacturers. Health Secretary Xavier Becerra called the development important, given that it was the first time that Medicare directly negotiated the prices of drugs.
In its current form, the Department of Health estimates that the policy could save Medicare $6 billion. For example, expectations are that patients with Crohn’s using Stelara could pay as little as $1,100 a month instead of $3,400. As drug makers point out, even co-payment can still be costly. The administration believes that the discounts will save $1. This was used to calculate projected savings of $5 billion for seniors by the year 2026.
This announcement comes at a time when people are still debating the high cost of living. As Kamala Harris is vetting for the presidency, the need for affordable Healthcare cannot be overemphasized.
