Lower Drug Prices Are Here
Medicare's new authority to negotiate prescription drug prices directly with pharmaceutical companies has resulted in an average savings of $1,200 per year for seniors who take the ten drugs selected for the initial round of negotiation.
The negotiated prices, which took effect this year, represent reductions of 40% to 75% from previous retail prices for medications treating common conditions including diabetes, heart disease, blood clots, and certain cancers.
Impact on Patients
The savings are life-changing for many seniors who previously faced impossible choices:
- Insulin costs capped at $35 per month, down from as much as $300
- Blood thinners reduced by 60%, saving patients an average of $800 annually
- Heart failure medications reduced by 55%
- A $2,000 annual out-of-pocket cap protecting seniors from catastrophic drug costs
"For the first time, Medicare can negotiate like every other country in the world," said a healthcare policy expert. "Americans should never pay the highest prices on earth for the same medications."
