In a move that has sent ripples through the pharmaceutical industry, the Biden administration has unveiled the first-ever Medicare-negotiated prices for 10 high-cost prescription drugs. This milestone marks a pivotal moment in the ongoing struggle to make life-saving medications more affordable for millions of older Americans. The new prices, slated to take effect in 2026, are projected to save the Medicare program around $6 billion in that year alone. For the seniors who rely on these medications, the price reductions could mean the difference between a life of debilitating illness and one of health and vitality.
Yet, behind the celebratory headlines, there’s a storm brewing. The pharmaceutical giants are far from pleased, with many decrying what they see as “government price-setting” that threatens their revenue and hampers innovation. AbbVie, the maker of Imbruvica, warned that such policies could stifle the scientific breakthroughs that bring life-changing treatments to market. Johnson & Johnson echoed these concerns, arguing that patients could face higher costs and restricted access as a result of the negotiations. It’s a classic clash between public health priorities and corporate interests, with billions of dollars—and lives—hanging in the balance.
The Biden administration, however, remains undeterred. Chiquita Brooks-LaSure, head of the Centers for Medicare and Medicaid Services, emphasized that these price negotiations are not just about cutting costs but about ensuring that all Americans have access to the treatments they need. “These negotiated prices are about more than just dollars and cents,” she said. “They’re about making sure your father, your grandfather, or even you can live longer, healthier lives.” With this first round of negotiations complete, the administration is already looking ahead to 2025, when up to 15 more drugs will be added to the list, further expanding the scope of this unprecedented effort.
As the dust settles, one thing is clear: this is just the beginning of a long and contentious journey. Lawsuits from drugmakers like Merck and Novartis are already making their way through the courts, challenging the constitutionality of the price talks. Meanwhile, millions of Medicare enrollees are left wondering how these changes will impact their wallets and well-being. For now, the Biden administration is celebrating a “historic milestone,” but the true test will come as these negotiated prices take effect and the battle over the future of American healthcare continues to unfold.
Initial 10 medications enter Medicare price negotiations:
- Eliquis, made by Bristol Myers Squibb – $231.00 negotiated price, $521 list price
- Jardiance, made by Boehringer Ingelheim and Eli Lilly – $197.00 negotiated price, $573.00 list price
- Xarelto, made by Johnson & Johnson – $197.00 negotiated price, $517.00 list price
- Januvia, made by Merck – $113.00 negotiated price, $527.00 list price
- Farxiga, made by AstraZeneca – $178.50 negotiated price, $556.00 list price
- Entresto, made by Novartis – $295.00 negotiated price, $628.00 list price
- Enbrel, made by Amgen – $2,355.00 negotiated price, $7,106.00 list price
- Imbruvica, made by AbbVie and J&J – $9,319.00 negotiated price, $14,934.00 list price
- Stelara, made by Janssen – $4,695.00 negotiated price, $13,836.00 list price
- Fiasp and NovoLog, made by Novo Nordisk – $119.00 negotiated price, $495.00 list price
(Source: U.S. Department of Health & Human Services)
