Vincent Rajkumar shared a post on X:
“Breaking: Medicare for the first time in history, has negotiated lower prices for prescription drugs. For the 10 drugs chosen, Medicare will save >$6 billion a year, because of 38 to 79 percent discounts off of list prices.
These are the 10 drugs that will see price reductions starting 2026. I have long supported Medicare negotiation for prescription drugs. I am glad it is finally happening.
Here are the results of the negotiation for the top 10 drugs
It’s amazing that in 2024 we are in a position where negotiations are needed for price of insulin.
This is the start of a major change in prescription drug policy enacted as part of the Inflation Reduction Act. Next year Medicare can negotiate for 15 additional drugs. And so on. See below.
Negotiation is important. Take the number 1 drug Medicare spends the most on, Eliquis ($ don’t reflect any rebates coz we don’t have that info). Most countries get Eliquis or its generic for a fraction of the price. A generic was approved in 2019. But not on the market yet.
Medicare negotiation after 7-13 years after a drug has been on the market only helps so much. What we need is negotiation at launch as in other developed countries. Similarly we need to also negotiation for Part B drugs. That starts only in 2028.
Medicare negotiation for drug prices has broad public support.
For more on prescription drug costs check out this article I writer in
here.
Medicare negotiation can also only affect high costs that arise at the manufacturer list price level. There is a whole segment of wholesalers, PBMs, and PBM owned and specialty pharmacies that contribute to high costs that need other solutions.
The effect on negotiated prices shown in this Table from CMS.
This will lead to approximately $1.5 billion in savings to out-of-pocket spending to our Medicare population in 2026.
Combined with the $2000 copay cap starting next year, this is fantastic news for seniors.”
Read further.
Source: Vincent Rajkumar/X
Vincent Rajkumar is a Professor of Medicine at the Mayo Clinic in Rochester, Minnesota, and Chair for the Mayo Clinic Myeloma, Amyloidosis, and Dysproteinemia Group. He also chairs the Board of directors of The International Myeloma Foundation and the Eastern Cooperative Oncology Group (ECOG) Myeloma Committee.
His extensive contributions include over 230 peer-reviewed publications, predominantly focusing on multiple myeloma and related plasma cell disorders. Furthermore, Dr. Rajkumar is a Section Editor for multiple myeloma and related disorders for Leukemia and an Associate Editor for the Mayo Clinic Proceedings.
