President Biden’s new Medicare drug-price negotiation program is expected to save taxpayers $6 billion in its first year, but it faces criticism from the pharmaceutical industry and Republicans who worry it may limit drug innovation and availability.
President Biden’s Medicare Drug-Price Negotiation Program to Save $6 Billion, Faces Criticism from Pharma and Republicans
According to the Washington Times, on August 15, 2024, President Joe Biden announced that the new Medicare drug-price negotiation program is expected to save taxpayers $6 billion in the first year. This program, part of the Inflation Reduction Act from 2022, will start by lowering prices on ten expensive drugs in 2026 and will expand to include more drugs in the future. Biden said that Medicare beneficiaries will save $1.5 billion on their prescription costs, which will help many seniors.
The program has faced criticism from the drug industry and some Republicans. They argue that the process forces drug companies to lower prices and might lead to fewer new drugs being developed. They also believe that this program resembles a socialist price setting, which they think could hurt drug innovation.
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$6 Billion in Savings: Biden’s Medicare Drug-Price Negotiation Program Set to Benefit Seniors (PHOTO: KSL TV 5)
Congressional Budget Office Projects $100 Billion Savings from Medicare Drug-Price Negotiation Program, Amid Criticisms
The Congressional Budget Office estimates that the program will save $100 billion by 2031 and might slightly reduce the number of new drugs coming to market. While some critics say the program doesn’t address issues with middlemen in drug pricing, the Biden administration believes it will help lower costs for seniors and may influence broader drug pricing practices.
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