Medicare is now negotiating prices for ten drugs
After decades of being legally barred from haggling, the federal government is finally using its massive market share to lower costs. This shift is already forcing global pharmaceutical giants to rewrite their long-term R&D playbooks for the first time in a generation.
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The Inflation Reduction Act ended a twenty-year ban on the government negotiating drug prices for Medicare.
Negotiated discounts for the first ten drugs range from thirty-eight to seventy-nine percent off list prices.
Januvia saw the largest price drop from five hundred twenty-seven dollars down to one hundred thirteen dollars.
Medicare beneficiaries are projected to save one and a half billion dollars in out-of-pocket costs.
Drug manufacturers are shifting research budgets from small-molecule pills to biologics to gain four extra years of protection.
The program will expand to include twenty new drugs annually starting in twenty twenty-nine.
- 01Intro1 min
- 02The Non-Interference Era Ends3 min
- 03The First Ten: Prices and Impact3 min
- 04The R&D Pivot3 min
- 05The Future Pipeline2 min
- 06Outro1 min
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