Biden Administration Announces Reduced Medicare Drug Prices in Historic Deal

The Biden administration secured agreements with drug companies to reduce prices for 10 of Medicare's most popular and expensive drugs. The new prices are projected to save US taxpayers $6 billion and older Americans $1.5 billion. Details of the final prices, expected to be shared imminently, will impact millions of older Americans managing diabetes, blood cancers, and heart conditions.

The Biden administration is celebrating a ground-breaking deal with drug companies to reduce the prices of 10 widely-used Medicare drugs. Officials anticipate that US taxpayers will save $6 billion while seniors could save $1.5 billion, though specifics on the new prices have yet to be disclosed.

This landmark agreement will affect the cost of medications used by millions of older Americans, including blood thinners like Xarelto and Eliquis and diabetes medications such as Jardiance and Januvia. Medicare spent $50 billion on these drugs last year.

The deal highlights a major shift in the Medicare program, which for decades was prohibited from negotiating drug prices with pharmaceutical companies. The White House sees this as a significant victory for older Americans, with potential long-term financial benefits for the program.

(With inputs from agencies.)