WEBVTT

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- The US Department of Health

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and Human Services announced
today the lowered prices

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of the first 10 prescription drugs

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that underwent Medicare negotiations.

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People that have Medicare
prescription coverage are expected

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to save $1.5 billion in
out-of-pocket costs in 2026

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when the new prices go into effect.

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According to the HHS, the
Health Department also said

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that if the negotiated prices
were in effect last year,

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Medicare would have saved
$6 billion in spending.

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HHS Secretary Xavier Beta
said in a statement that

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for the first time ever,
Medicare negotiated directly

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with drug companies and

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that the American people
are better for it.

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He added that the Congressional
Budget Office is estimating

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a hundred billion dollars in
savings over 10 years from

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the negotiations.

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The Inflation Reduction
Act, which was passed

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by Congress in 2022,
gave Medicare the power

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to negotiate the price
for brand name drugs

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that make up most of its
prescription drug spending.

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The 10 selected drugs accounted

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for $56.2 billion in
Medicare spending in 2023.

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The negotiations resulted in
price discounts raging from 38%

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to 79%.

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Merck's Diabetes Drug.
Genuvia saw the biggest drop.

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Its price fell 79% to $113

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for a 30 day supply from
a list price of $527.

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Other drugs that were subject

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to negotiations include
Bristol Myers, Squibb's,

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blood thinner, Eliquis, and
Janssen Psoriasis Medication.

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Stelara. The Centers for
Medicare Medicaid Services is set

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to select 15 more drugs
for price negotiations

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by February, 2025.

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I'm Bruce Gill reporting for courts.

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Thanks for watching, and
stick with qz.com for more.