Biden Administration Secures Major Deal To Slash Costs Of High-Priced Medicare Drugs

 The Biden administration has struck a deal with pharma companies to cut the prices of 10 expensive drugs commonly used by older Americans on Medicare, a policy achievement that will likely become a key talking point of the Harris campaign.

In statement released by the White House, President Joe Biden said deal would result in $6 billion in savings for the taxpayer.

The renegotiated prices will also lead to $1.5 billion in cumulative savings in out-of-pocket spending for medicare enrollees, the White House said.

The deal covers 10 key drugs used to manage or treat diabetes, heart failure, blood clots, arthritis and blood cancers.

In an accompanying statement, Vice President Kamala Harris called the announcement “lifechanging” for many people and said additional prescription drugs will be selected each year “as part of our Medicare drug price negotiation program.”

Up to 15 additional Medicare drugs will be up for negotiation in 2025, followed by another 15 in 2026 and “up to 20 drugs every year after that,” Harris said.

The list includes diabetes medications like Januvia, Jardiance and Farxiga (the latter two are also used for treating heart failure), along with Fiasp insulin injections, heart failure drug Entresto and blood cancer drug Imbruvica. Also on the list are Stelara and Enbrel—which are used to treat autoimmune disorders like arthritis and Crohn's disease—along with blood thinners Eliquis and Xarelto.

Biden and Harris will appear on stage together for the first time since he dropped his reelection bid last month and endorsed her. The event is scheduled to take place in Maryland, where both are expected to tout the reduced drug prices as a major win for the administration’s Inflation Reduction Act of 2022.

In his statement, Biden acknowledged Harris’ role in the passage of the Inflation Reduction Act by “casting the tie-breaking vote in the Senate” in favor of the legislation.

“It’s a relief for the millions of seniors that take these drugs to treat everything from heart failure, blood clots, diabetes, arthritis, Crohn’s disease and more—and it’s a relief for American taxpayers,” Biden said.