Will drug price negotiations work? Here’s what you need to know.

Key Facts

• Americans with private insurance will not see a direct impact on the prices they pay for drugs as a result of Medicare price negotiations.
• “One argument is that drug companies are already maximizing their prices and profits ... so the fact that Medicare will get a lower price on some of these drugs shouldn’t impact the prices paid by private insurers and the people they cover.”
• President Joe Biden’s fiscal 2024 budget proposes allowing Medicare to negotiate drug prices more quickly after new medicines are approved and increasing the number of drugs subject to price negotiation, a provision that the administration estimates would save $160 billion over 10 years.
• Top House Democrats in July introduced legislation to expand the scope of the Medicare drug price negotiation program by expanding the number of drugs added to the program from 20 to 50 starting in 2029 and by extending the IRA’s caps on drug costs that go beyond inflation to those with private insurance.

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