The 10 medications were used by 9 million people with Medicare coverage in 2023.
The negotiated prices will take effect January 1, 2026.
But we fought backand won, President Joe Biden said in a statement.
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Rising drug prices can be especially problematic for older adults.
How Much Will People Save?
The negotiated price for each drug is at least 38% lower than that drugs list price in 2023.
The diabetes drug Januvia will see the biggest cut, with a 79% cost reduction.
Importantly, however, its not possible to directly compare the two costs.
When the manufacturer reduces the cost of the drug, both the insurance program and the patient save money.
Each Medicare Part D plan has slightly different cost-sharing structures.
More drug prices are set to be negotiated in the coming years.
The next slate of drugs up for negotiation will be announced in February 2025.
Last year, the administration announced a $35-a-monthprice cap for insulin.
In past years, they were expected to pay 100% of their drug costs in this phase.
Now, they pay 25% of their drug costs out of pocket.
In 2024, those out-of-pocket costsare cappedat about $3,500.
Next year, that cap will drop to $2,000.
When people have even higher healthcare costs, they move from the coverage gap to the catastrophic coverage phase.
In 2024, those out-of-pocket costsare cappedat about $3,500 for people with catastrophic coverage.
Next year, that cap will drop to $2,000.
Many of these reforms are already in place for the commercial market.
I believe that our drug industry is thriving and innovative.
You may be able toget drug coveragethrough Medicare even if you get your health insurance from a private insurer.
