Medicare Begins Drug Price Negotiations, But Benefits Won't Arrive for Years

Medicare has started negotiating drug prices, but benefits won't come for a couple years.
Other important changes to medication costs are happening soon.
Steps can be taken now to lower prescription spending.
The first round of negotiations has begun, which should help enrollees eventually.
Negotiated drug prices will take time to impact Medicare enrollees.

barrons.com

Relevant topic timeline:

8/15/2023

Drug makers have tripled the prices of top Medicare drugs

Main topic: The exorbitant price hikes of the top 25 costliest drugs for Medicare Part D plans. Key points: 1. The price hikes of these drugs have more than tripled their list prices since entering the market. 2. The price increases far outstripped the rate of inflation, ranging from 20 percent to 739 percent. 3. Only one drug had price increases below the rate of inflation, while the average lifetime price increase for the top 25 drugs was 226 percent.

8/17/2023

Price gouging of cancer drugs in short supply hits some hospitals hard

Main Topic: Price gouging of cancer drugs during the drug shortage Key Points: 1. Smaller hospitals and cancer centers are facing price hikes of vital cancer drugs, with suppliers charging five to ten times more for medications. 2. Gray market vendors exploit drug shortages by buying medications at inflated prices and selling them to hospitals or clinics. 3. The increased costs pose a significant risk to cancer patients, especially those treated at smaller facilities with limited negotiating power and lower income levels.

8/24/2023

White House to name first 10 drugs for Medicare negotiations early

The Biden administration is expected to announce the first 10 prescription drugs selected for Medicare price negotiations, marking a major step towards lowering drug prices through direct negotiations with pharmaceutical manufacturers.

8/30/2023

Medicare should negotiate with drugmakers. But not set prices

The newly implemented rules in America that allow Medicare to negotiate drug prices could have damaging effects on innovation in the pharmaceutical industry and may discourage investment in new medicines, leading to fewer treatments in the future. Instead of focusing solely on price controls for drugs, regulators should address the issues within the rest of the supply chain, such as opaque middlemen and hospital mergers, to effectively lower healthcare costs.

9/29/2023

Pharma Companies to Negotiate Medicare Drug Prices Despite Lawsuit, Citing 'No Choice'

Four pharmaceutical companies, including Merck, AstraZeneca, Bristol Myers Squibb, and Boehringer Ingelheim, have agreed to negotiate Medicare drug prices, albeit reluctantly, after suing the US government over the new requirement.

10/2/2023

Inflation Reduction Act Targets Biologic Patents to Speed Biosimilar Savings

The Inflation Reduction Act indirectly aims to address market entry impediments by selecting certain biologics for price negotiation, encouraging competition and potential cost savings in the prescription drug market.

10/12/2023

Medicare Premiums and Deductibles Set to Increase in 2024 After 2023 Decrease

Medicare Part A and B premiums for 2024 are set to increase by 6 percent, with the monthly cost rising from $164.90 to $174.70, and the annual deductible for Medicare Part B beneficiaries increasing from $226 to $240, mainly due to projected increases in healthcare spending and the remedy for the 340B-acquired drug payment policy.

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Posted 9/14/2023, 6:00:00 AM