WASHINGTON D.C. — Today, the Biden-Harris administration released the results of its first-ever drug price negotiations through Medicare, marking a historic shift in drug pricing policy and promising significant savings for nearly nine million American patients. The new lower prices negotiated for 10 widely-used, high-cost medications will save some patients on Medicare up to thousands per month, with one drug having a list price reduction of over $9,000 per month beginning in 2026.

Patients on Medicare taking these 10 drugs paid $3.9 billion in out-of-pocket costs in 2023 alone and according to the Centers for Medicare and Medicaid (CMS), if these prices had been in effect in 2023, people on Medicare would have saved $1.5 billion in out-of-pocket costs. In addition, taxpayers are expected to save $6 billion when the new negotiated prices go into effect in 2026.

Merith Basey, Executive Director of Patients For Affordable Drugs, issued the following statement:

“For the first time in its 59-year history, Medicare has ushered in a new era of affordability for patients across the country by successfully negotiating lower prices on 10 of the most expensive and widely-used drugs. Medicare Negotiation alters the trajectory of drug pricing in the U.S. and begins to break the monopoly power of big drug corporations to dictate prices of brand-name drugs to people in this country.

“It marks a critical shift in the system to make it work for the people it is supposed to serve – patients – rather than those who profit from it. The lower negotiated prices symbolize new hope for patients on these drugs who have been forced to make impossible choices between their health, well-being, and financial stability.

“This is a significant victory, but it’s only the beginning. As we celebrate this milestone, we remain committed to expanding the Medicare negotiation program to more drugs and fighting for additional reforms to lower drug prices for all patients who need relief. Today’s announcement proves that change is possible when patients demand it.”

This announcement comes after decades of advocacy and represents the first time in Medicare’s history that the program has directly negotiated drug prices with pharmaceutical corporations. The negotiated prices cover treatments for common conditions such as cancer, diabetes, heart disease, and blood clots, which affect a large portion of the community of patients on Medicare, including;

• Judy Aiken, a retired nurse from Portland, ME, who shared her story directly with President Biden earlier this week, depends on Enbrel to treat her psoriatic arthritis and psoriasis. In 2023, Enbrel had a list price of $7,106 per month and Judy spent $9,000 out of pocket for the drug that year. In 2026 the negotiated list price will be reduced to $2,355 per month – a 67 percent price reduction. 

• Sheldon Armus, a patient advocate from Boynton Beach, FL, depends on the blood thinner, Xarelto, to prevent dangerous blood clots. Johnson & Johnson has hiked the list price of Xarelto to over $500 for a 30-day supply. Now with the lower negotiated list price of $197, Sheldon could save hundreds per month on his prescription in 2026. 

• Lynn Scarfuto, a retired nurse from Herkimer, NY, takes Imbruvica to treat her cancer. Imbruvica has a monthly list price of $14,934. With a lower negotiated price of $9,319 for Imbruvica, the medication responsible for keeping her alive is priced closer within reach. 

Find the full list of price reductions here.

These prices come after six months of negotiations between pharmaceutical companies and CMS. The negotiation process, mandated by the Inflation Reduction Act, aims to balance the need for affordable medications with the importance of continued pharmaceutical innovation. This initial round of negotiations sets the stage for future expansions of the program, with additional drugs slated for negotiation in subsequent years.

BACKGROUND: 

• The Congressional Budget Office (CBO) projects that the Medicare negotiation program will save taxpayers $100 billion between 2026 and 2031. CBO originally predicted $3.7 billion in savings for the first year, but that number has increased to $6 billion in savings following finalized drug prices.

• In 2023, Farxiga, manufactured by AstraZeneca, generated nearly $6 billion in revenue, with 994,000 Medicare Part D patients taking the drug that year.

• In 2023, Jardiance, manufactured by Boehringer Ingelheim, brought in $8 billion, serving 1,883,000 Medicare Part D patients.

• In 2023, Eliquis, manufactured by Bristol Myers Squibb, brought in $12.2 billion in global sales, sporting 4% growth from 2022, with 3,928,000 Medicare Part D patients using the drug that year.

• In 2023, Xarelto, Stelara, and Imbruvica, manufactured by Janssen a company of Johnson & Johnson, together made $18.52 billion and were used by 1,364,000 Medicare Part D patients.

• In 2023, Januvia, manufactured by Merck, generated $3.3 billion in revenue, with 843,000 Medicare Part D patients using the drug.

• In 2023, the combination of Fiasp, Fiasp FlexTouch, Fiasp PenFill, NovoLog, NovoLog FlexPen, and NovoLog PenFill, manufactured by Novo Nordisk, earned $7.3 billion and was prescribed to 785,000 Medicare Part D patients.

• In 2023, Entresto, manufactured by Novartis, generated $6 billion in revenue, serving 664,000 Medicare patients.

• P4AD launched the US v Pharma campaign to mobilize patients and advocates to defend the hard-won victory of Medicare negotiation against Big Pharma’s multi-million dollar legal efforts to halt the program from delivering relief to patients.

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Patients For Affordable Drugs is the only national, bipartisan patient advocacy organization focused exclusively on policies that lower prescription drug prices. We empower and mobilize patients by amplifying their experiences with high drug prices to hold those in power to account and fight to shape and achieve system-changing policies that make prescription drugs affordable for all people in the United States. P4AD does not accept funding from organizations that profit from the development and distribution of drugs.