Drug Firms Counteroffer in Biden-Harris Lower Price Talks
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The U.S. Department of Health and Human Services (HHS) announced that all manufacturers participating in the first cycle of Medicare drug price negotiations have responded with counteroffers. The negotiations are part of the Inflation Reduction Act, a law aimed at reducing the cost of prescription drugs. In addition, the Inflation Reduction Act has expanded eligibility for full benefits under the Low-Income Subsidy program, and HHS released research detailing how the Act will lower drug costs particularly for rural Medicare Part D enrollees, who face higher rates of certain health conditions and greater healthcare costs.
New research reveals benefits of Inflation Reduction Act for rural Medicare beneficiaries
The U.S. Department of Health and Human Services (HHS) through the Centers for Medicare & Medicaid Services (CMS) stated that all manufacturers involved in the first round of Medicare drug price negotiations have submitted counteroffers. The Inflation Reduction Act, part of President Biden’s strategy to decrease prescription drug costs, is facilitating these negotiations.
HHS Secretary Xavier Becerra expressed satisfaction with the drug companies’ response and emphasized the administration’s commitment to reducing costs. Similarly, CMS Administrator Chiquita Brooks-LaSure highlighted the administration’s focus on improving access to costly medications while promoting market competition and innovation.
The negotiations are set to continue for several months, with agreed-upon maximum fair prices to be disclosed by September 1, 2024, and implemented in 2026.
The Inflation Reduction Act has already begun to lower healthcare and prescription drug costs. The Act expanded the Low-Income Subsidy program (LIS or “Extra Help”) under Medicare Part D, benefiting nearly 300,000 people with lower incomes. An outreach campaign is also in place to reach over three million eligible, non-enrolled individuals. By 2025, all Medicare Part D enrollees will benefit from a $2,000 cap on out-of-pocket prescription drug costs.
The HHS’s Office of the Assistant Secretary for Planning and Evaluation (ASPE) provided a fact sheet detailing the Act’s potential impact on the eight million rural Medicare Part D enrollees. The research suggests significant savings for rural enrollees and identifies higher rates of certain health conditions in these areas.
The ASPE fact sheet can be accessed at: ASPE Research Series
The new website LowerDrugCosts.gov helps Medicare beneficiaries understand the Inflation Reduction Act’s potential benefits. As part of the outreach effort, HHS has added 50 state-by-state infographics to the website, aiding in the education about the Act.
Information on the Extra Help program can be obtained from: Medicare Publications
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