Drug price reform could be boon for Medicare recipients

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Democrats are celebrating a major victory this week with the Biden administration’s release of the first 10 medications that will soon be eligible for negotiations between Medicare and the companies that make the drugs. The list includes medications that treat common chronic health conditions that afflict millions of Americans – including diabetes, heart disease and kidney disease – but come with steep price tags.

Any American age 65 and up who has stood in line at a pharmacy for themselves or a loved one – only to learn that the drug they need is beyond their means financially – might find relief in the news that the U.S. is finally on a path toward substantially lowering drug prices.

But how much patients actually stand to save remains to be seen, writes Simon F. Haeder, a Texas A&M University political scientist who studies health policy. Numerous hurdles stand in the way of successful negotiations, the savings are still years away, and politicians and drugmakers could block meaningful pricing reforms, Haeder explains. But “if it can withstand the ongoing attacks and become settled law,” he says, “Americans ages 65 and up could see real financial relief down the line.”

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Amanda Mascarelli

Senior Health and Medicine Editor

Americans pay far more for prescription drugs compared with people in other high-income countries. Willie B. Thomas/Digital Vision via Getty Images

Medicare starts a long road to cutting prices for drugs, starting with 10 costing it $50.5 billion annually – a health policy analyst explains why negotiations are promising but will take years

Simon F. Haeder, Texas A&M University

The drug pricing reform may drastically lower prices for some of the most critical life-saving drugs in the long run. But numerous obstacles stand in the way.

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