The Biden administration has released a list of 10 medications, including the blood thinner Eliquis and diabetes treatment Jardiance, for Medicare's first-ever drug price negotiations in an effort to lower medical costs, although the savings won't be noticeable for several years and litigation from drugmakers and criticism from Republican lawmakers persist.
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.
Summary: Medicare has started its first round of drug price negotiations, which is expected to benefit enrollees in the future, but immediate steps should be taken to lower medication costs.
