Medicare's Ambitious Drug Price Negotiation Plan: President Joe Biden Calls To Expand Targeted Medicines To 50 Annually by 2029

In a move outlined in his upcoming State of the Union address, President Joe Biden is pushing for an increase in the number of prescription drugs subject to negotiation under the federal Medicare program. 

Currently set at 20 medicines annually, Biden proposes a new target of at least 50 drugs per year, part of a broader initiative to make medications more affordable for seniors.

The pharmaceutical industry is expected to vehemently oppose the president’s call for expanded negotiations, given its impact on profits.

Related Content: Medicare’s Historic Negotiations To Lower Drug Prices, Analysts Anticipate Upto Potential Price Cuts Of 60%.

The negotiation process initiated by the Centers for Medicare and Medicaid Services last fall sets the stage for talks on the first ten drugs, with new prices effective in 2026. 

Subsequent negotiations will add 15 drugs each in 2027 and 2028, ultimately reaching 20 annually from 2029 onwards.

The White House aims to cut federal spending by $200 billion, it remains unclear whether the proposed 50 drugs target will be implemented gradually or immediately from 2029, CNBC noted. 

Beyond drug negotiations, Biden’s broader health-care policy proposals include capping Medicare copayments at $2 for common generic drugs, extending the $2,000 cap on out-of-pocket drug costs to all private plans, and expanding provisions requiring drugmakers to pay rebates to Medicare for rising drug prices to cover commercial drugs, not just those sold to Medicare.

In 2025, when the $2,000 out-of-pocket cap on prescription drugs takes effect in Medicare, an estimated 19 million seniors and beneficiaries are expected to experience annual savings of $400 on their prescription medications.

Read Next: Biden Administration To Send Pharma Companies Opening Offers For Medicare Program’s First Ever Drug Price Negotiations.

CNBC report notes that Biden’s focus on lowering U.S. drug prices has been a cornerstone of his health-care agenda and reelection strategy for 2024. 

However, the fate of these proposals hangs in the balance of a divided Congress, introducing uncertainty regarding their passage into law.

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