U.S. makes initial offers in Medicare drug price negotiations
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The Biden administration announced Thursday that it is sending initial offers to the makers of the top 10 prescription drugs selected for price negotiations with Medicare under a program historic federal government intended to reduce drug spending.
L he Biden administration has selected 10 drugs for price negotiations, including Farxiga, an AstraZeneca drug for diabetes, heart failure and chronic kidney disease.Credit...George Frey/ReutersThe drugs selected for negotiations are taken by millions of older Americans to treat diseases such as diabetes, cancer and heart failure. The administration identified them in August, beginning a lengthy process intended to arrive at an agreed price that would take effect in 2026, assuming the negotiating program survives legal challenges.
The first set of price offers is a key step in the negotiation process. Each drugmaker has until early March to accept the offer or propose a counteroffer to the government. A series of negotiating sessions could follow, with the process expected to conclude by August.
Health policy experts said the announcement of the first round of offers amounted to a sort of start. gun, giving the Biden administration the opportunity to adopt an aggressive posture and test the willingness of drugmakers to acquiesce.
The proposals help “set the tone for the rest of this story.” " said Andrew W. Mulcahy, a health economist at the RAND Corporation, who advised the Biden administration on implementing drug price negotiations.
Drugs Companies subject to price negotiations include Eliquis, Jardiance, Xarelto, Januvia, Farxiga, Entresto, Enbrel, Imbruvica and Stelara. Insulin products Fiasp and NovoLog were also selected. T...
The Biden administration announced Thursday that it is sending initial offers to the makers of the top 10 prescription drugs selected for price negotiations with Medicare under a program historic federal government intended to reduce drug spending.
L he Biden administration has selected 10 drugs for price negotiations, including Farxiga, an AstraZeneca drug for diabetes, heart failure and chronic kidney disease.Credit...George Frey/ReutersThe drugs selected for negotiations are taken by millions of older Americans to treat diseases such as diabetes, cancer and heart failure. The administration identified them in August, beginning a lengthy process intended to arrive at an agreed price that would take effect in 2026, assuming the negotiating program survives legal challenges.
The first set of price offers is a key step in the negotiation process. Each drugmaker has until early March to accept the offer or propose a counteroffer to the government. A series of negotiating sessions could follow, with the process expected to conclude by August.
Health policy experts said the announcement of the first round of offers amounted to a sort of start. gun, giving the Biden administration the opportunity to adopt an aggressive posture and test the willingness of drugmakers to acquiesce.
The proposals help “set the tone for the rest of this story.” " said Andrew W. Mulcahy, a health economist at the RAND Corporation, who advised the Biden administration on implementing drug price negotiations.
Drugs Companies subject to price negotiations include Eliquis, Jardiance, Xarelto, Januvia, Farxiga, Entresto, Enbrel, Imbruvica and Stelara. Insulin products Fiasp and NovoLog were also selected. T...
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