The first-ever negotiations between the federal government and pharmaceutical companies have led to agreements that will lower the prices of 10 treatments, reducing costs for the Medicare program and for some individual seniors, the Biden administration announced early Thursday morning.
This round of negotiations began in 2023 and took place because of the Inflation Reduction Act, the law that Democrats in Congress passed on a party-line vote and that President Joe Biden signed two years ago. The new prices are for drugs covering a variety of conditions, including diabetes and inflammatory illnesses, and are set to take effect in January 2026.
The negotiation process is going to happen each year, with a new set of drugs each time. If all goes to plan, that means the scope of drugs subject to negotiated prices will grow each year, while the savings will accumulate.
