White House reaches landmark deal to lower drug costs – Mother Jones

On Thursday, The Biden administration announced that after months of negotiations, it had finally reached an agreement with pharmaceutical companies to lower the prices of some of the most expensive Medicare drugs, prescriptions for which cost the federal government about $56 billion last year.

“It's a relief for the millions of seniors who take these drugs to treat everything from heart failure and blood clots to diabetes, arthritis, Crohn's disease and more – and it's a relief for American taxpayers,” President Biden said in a statement.

“Kamala and I both understand that. We know this isn't just about health care,” he added, appearing alongside Vice President Kamala Harris for their first joint event since she won the Democratic presidential nomination. “It's about your dignity.”

Starting in 2026, the cost of 10 prescriptions for diseases ranging from diabetes to blood cancer will be dramatically reduced — by as much as 79 percent of the manufacturer's list price. These cuts will save taxpayers $6 billion and retirees and beneficiaries alone more than $1.5 billion, according to the Center for Medicare and Medicaid Services.

The move was reportedly made possible by the passage of the Inflation Reduction Act in 2022, which opened the door for changes to Medicare aimed at “expanding benefits, reducing drug costs, and improving sustainability.” The deal is just phase one of the administration's plan to make Medicare more affordable: The Department of Health and Human Services will be allowed to select another set of 15 drugs for price negotiations next year.