White House says deals struck to cut prices of popular Medicare drugs that cost $50 billion yearly
older Americans will pay when they fill those prescriptions.
White House officials said Wednesday night they expect U.S. taxpayers to save $6 billion on the new prices, while older Americans could save roughly $1.5 billion on their medications. Those projections, however, were based on dated estimates and the administration shared no details as to how they arrived at the figures.
Nonetheless, the newly negotiated prices — still elusive to the public as of early Thursday morning — will impact the price of drugs used by millions of older Americans to help manage diabetes, blood cancers and prevent heart failure or blood clots.
The drugs include the blood thinners Xarelto and Eliquis and diabetes drugs Jardiance and Januvia. Medicare spent $50 billion covering the drugs last year.
It's a landmark deal for the Medicare program, which provides health care coverage for more than 67 million older and disabled Americans. For decades, the federal government had been barred from bartering with pharmaceutical companies over the price of their drugs, even though it's a routine process for private insurers.
«This meant that drug companies could basically charge whatever they want for life-saving treatments people rely on, and all Americans paid the price,» White House adviser Neera Tanden told reporters in a Wednesday night call.
The drug deals will become a focal point for Vice President Kamala Harris' presidential campaign, especially since she cast the tie-breaking vote to pass the law. She will join President Joe Biden
