Big pharma companies including Pfizer are planning to raise prices on more than 500 drugs this month, according to a recent Reuters report.
Using data from healthcare research firm 3 Axis Advisors, the report noted that prices will rise for 140 brands of drugs. When factoring in different doses and formulations, this number jumps to more than 500. Besides Pfizer, Sanofi, and Takeda Pharmaceuticals will also increase prices, it added.
In addition, GlaxoSmithKline is likely to lower prices on at least 15 drugs this month, according to the report.
The price hikes come ahead of the Biden Administration's announced plan to publish discounted rates for 10 drugs in September as part of its price negotiation program with drugmakers. The discounted rates are scheduled to take effect in 2026.
According to the Department of Health and Human Services (HHS), those first 10 drugs make up nearly 20% of spending in the Medicare Part D drug benefit program.
“Negotiating prices on these drugs has the potential for significant savings to enrollees, taxpayers and the Medicare program. As additional drugs are selected for negotiation in future years, the benefits of negotiation will continue to grow,” Rebecca Haffajee, principal deputy assistant secretary under the HHS Assistant Secretary for Planning and Evaluation section, said last month in a statement about a new report on the program.
The Biden Administration announced last month that dozens of drugmakers raised prices faster than inflation, triggering Medicare rebates. As a result, Medicare coinsurance for certain Part B drugs is expected to drop for some beneficiaries starting this month.
Drugmakers have fought back against the price negotiation talks, however, saying that lower revenues would discourage investments in new technology and medicines to help find cures and treatments, according to a July 23 New York Times report.
Ways to save on prescriptions
The drug pricing talks come amid reports showing that many Americans have had to forgo filling at least one prescription. There are, however, steps that you might be able to take to save on prescription medications. These include seeing if you are eligible to enroll in Patient Assistance Programs and more.
