Biden’s 5 Domestic Policy Proposals in State of the Union

TL/DR –

President Biden has proposed allowing Medicare to negotiate prices for at least 50 drugs annually, an increase from the current target of 20. The proposal, which could potentially reduce federal spending by billions each year and influence lower drug prices for non-Medicare users, would require approval from Congress. However, the Biden administration’s drug price negotiations, which began this year, are still in the theoretical stage, with lawsuits from the drug industry and new prices not expected until 2026 at the earliest.

Biden Proposes Medicare Drug Price Negotiations for 50 Drugs Annually

Biden proposed that Medicare should negotiate prices for a minimum of 50 drugs annually, a significant increase from the existing target of 20 drugs. This policy shift, which needs approval from Congress, could potentially reduce federal spending by billions of dollars every year. As Medicare’s prices impact those of private insurers, this could also result in lower drug prices for Americans not covered by the program.

Challenges to Biden’s Drug Price Negotiation Initiative

However, Biden’s drug price negotiation plans, which commenced this year, are still in the theoretical stage. The initial focus is on 10 drugs, but the drug industry has launched multiple lawsuits to halt the initiative. Moreover, the newly negotiated prices won’t take effect until 2026 at the earliest.

Biden Administration Targets Health Insurance Loopholes

Prior to this announcement, White House officials criticized health insurance plans that reportedly exploit average Americans by excluding coverage for preexisting conditions, among other loopholes. The administration is nearing the finalization of a rule to restrict the availability of these health insurance plans, officials said.

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