John Tozzi, Fiona Rutherford and Robert Langreth | (TNS) Bloomberg News WASHINGTON — The U.S. government’s landmark drug price negotiations will save Americans $7.
5 billion in its inaugural year, the Biden administration said, a first step toward driving down its world-leading pharmaceutical bill. The savings will be split between senior citizens, who will fork out $1.5 billion less in out-of-pocket costs for ten medications, and the government, as its health insurance program for the elderly will pay $6 billion less to treat heart failure, blood clots, diabetes and other conditions in 2026.
Some of the world’s biggest medicines made by leading drug companies will see prices cut by 38% to 79%, according to a fact sheet put out by the Centers for Medicare and Medicaid Services. Diabetes drugs saw the biggest reductions, including a 79% discount off the list price for Merck & Co.’s Januvia and a 68% cut for AstraZeneca Plc’s Farxiga.
Amgen Inc.’s Enbrel rheumatoid arthritis injection was hit with a 67% reduction off its 2023 list price. The smallest price cut was for AbbVie Inc.
’s leukemia drug Imbruvica, with a 38% price reduction. Those figures overstate the actual savings that will be achieved, as drugmakers already negotiate behind-the-scenes discounts with private companies that run Medicare drug plans. Those rebates can be substantial, particularly for crowded categories like diabetes.
For conditions like cancer, the existing discounts are typically smaller,.