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Biden Administration to Reduce Prices on Dozens of Prescription Drugs in Medicare

Biden Administration to Reduce Prices on Dozens of Prescription Drugs in Medicare

The Biden administration announced Wednesday that it will reduce the prices of 64 prescription drugs for Medicare enrollees as part of its effort to combat soaring pharmaceutical costs.

The price reduction will be in effect between July 1 and September 30, 2024, benefiting roughly 750,000 seniors who access the applicable drugs through Medicare Part B. The list of drugs affected includes treatments for osteoporosis, cancer and infections.

A provision in the Inflation Reduction Act, which President Joe Biden signed into law in 2022 after it passed through Congress despite opposition from all Republicans, gives the federal government the power to impose penalties on drugmakers who raise their prices faster than the rate of inflation. The penalties take the form of rebates paid by manufacturers, which the Centers for Medicare & Medicaid Services will use to reduce prices for end users in the Medicare system.

According to the U.S. Department of Health and Human Services, the savings for individual patients could range between $1 and $4,593 per day during the period when the rebates are in effect.

“Without the Inflation Reduction Act, seniors were completely exposed to Big Pharma’s price hikes. Not anymore,” said White House Domestic Policy Advisor Neera Tanden. “Thanks to President Biden and the new Medicare inflation rebate program, seniors are protected and benefitting from lower Part B drug costs.”

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