Joe Biden’s administration announced a landmark healthcare negotiation on Thursday in which 10 popular medications will now be available at lower prices for Medicare beneficiaries.
The discounts on the 2023 prices ranged from 38% to 79%, according to the figures released by the Centers for Medicare & Medicaid (CMS).
The 10 drugs are Januvia (diabetes), Fiasp (diabetes), Farxiga (diabetes, heart failure, kidney disease), Enbrel (arthritis and psoriasis), Jardiance (diabetes, heart and kidney disease), Stelara (arthritis, psoriasis and colitis), Xarelto (blood clots), Eliquis (blood clots), Entresto (heart failure) and Imbruvica (blood cancers).
The new policy, which is the first of its kind in the US, was part of the Inflation Reduction Act, which Democrats passed in 2022. It gives people on Medicare, a government insurance plan for seniors above 65, financial relief amid increasing health costs.
“For years, millions of Americans were forced to choose between paying for medications or putting food on the table, while big pharma blocked Medicare from being able to negotiate prices on behalf of seniors and people with disabilities,” Biden said in a statement. “But we fought back – and won.”
Biden’s statement also pointed out that no Republicans voted for the bill, which also includes climate legislation. The announcement also comes toward the end of a fraught election cycle, in which the Biden administration and Democrats are hoping to double down on their messaging around economic growth and so-called kitchen-table issues.
Healthcare is a key issue for voters in this election, and Biden held a slight lead over Trump for his platform throughout the year before he dropped out of the race.
“As someone who’s worked on these issues for a really long time, it is a historic moment that is finally happening,” said Neera Tanden, director of the White House Domestic Policy Council.
“As we like to say, on landmark healthcare achievements, this is a big … deal,” she added, making reference to Biden’s infamous remark at the signing of the Affordable Care Act by inserting a pause where Biden used an expletive.
According to the administration, the negotiations will save Medicare $6bn when they take effect in 2026, while saving seniors an estimated $1.5bn.
Xavier Becerra, the health and human services secretary, said on a call with reporters that the negotiations were “comprehensive” and “intense”.
“It took both sides to reach a good deal,” he said.
Bringing down the cost of prescription drugs was a cornerstone of Biden’s economic agenda and part of his re-election pitch to Americans.
Kamala Harris, the vice-president and Democratic nominee for president, also weighed in on the Medicare negotiations, focusing on her tie-breaking vote for the IRA, her work with Biden and her past record.
“As attorney general, I held big pharma accountable for their deceptive and illegal practices. The record-breaking settlements that I won – for the people – amounted to more than $7bn against pharmaceutical companies for their unsafe and unfair tactics,” she said. “President Biden and I will never stop fighting for the health, wellbeing, and financial stability of the American people.”
Becerra emphasized that Harris played a critical role by casting the tie-breaking vote in her capacity as president of the Senate to pass the IRA.
“Without her vote, we wouldn’t be talking about having negotiated drug prices,” Becerra told reporters. “President Biden and Vice-President Harris delivered on their promise to bring down the price of essential prescription medications, and now we’re going to see the benefits of it with that.”
