Opinion: How the drug price negotiation program could affect Medicare Part D beneficiaries
Prescription drug plans and drug manufacturers might not be thrilled with price transparency.
After the recent announcement of the first 10 drugs selected for Medicare price negotiation, much has been discussed about the drugs that were selected and the magnitude of price decreases that can be achieved. Less attention has been given to what this all means for Medicare beneficiaries.
The negotiation, informed by confidential data from manufacturers and analysis by the Centers for Medicare and Medicaid Services, will result in a maximum fair price for each drug, which will be announced Sept. 1, 2024, and will take effect Jan. 1, 2026. The Congressional Budget Office has estimated that the negotiations could save Medicare about $3.7 billion in the first year and more than $98 billion by 2031. The 10 drugs selected in 2023 represent more than 20% of Medicare Part D’s total annual spending on prescription drugs.
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