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Medicare pricing discussions are expected to focus on these 10 drugs this next autumn


Medicare, for the first time in its history, is gearing up to directly negotiate drug prices with the pharmaceutical industry. The Centers for Medicare and Medicaid Services plans to unveil the list of 10 drugs it intends to target for negotiation by September 1st. The move is part of the Biden administration’s strategy to reduce soaring drug costs. The list of targeted drugs is not finalized, but several pharmaceutical companies, including Merck, Bristol-Myers Squibb, Johnson & Johnson, and AbbVie, have indicated that some of their major medications are expected to be on the list.

The effort to negotiate drug prices comes as the list price of Medicare’s top 25 drugs has more than tripled on average since their introduction to the U.S. market, significantly outpacing inflation. The cost hikes have driven up out-of-pocket expenses for Medicare beneficiaries and have led to concerns about the affordability of necessary medications. This move by Medicare aims to alleviate the financial burden on older adults.

However, the pharmaceutical industry has been actively opposing these negotiations, with several companies filing lawsuits against the program, claiming it infringes on their property rights and threatens future drug development. Despite these challenges, Medicare is pushing ahead with its plans, and the negotiations are expected to take place over the next year, with initial price offers, counteroffers, and reduced prices coming into effect in 2026.

The outcome of these negotiations will be closely watched as it could potentially reshape how drug pricing is approached in the United States, impacting both the pharmaceutical industry and the millions of Americans who rely on Medicare for affordable healthcare.

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