The price negotiation program was passed in 2022opens in a new tab or window as part of the Inflation Reduction Act (IRA). The measure lowers prescription drug costs for seniors by empowering Medicare to negotiate the cost of prescription drugs. The price for sitagliptin, a type 2 diabetes drug, dropped from $527 for a 30-day supply to $113, a 79% decrease. The other nine drugs whose prices were announced Thursday included:
- Insulin aspart injection (NovoLog, among others): for diabetes mellitus; original price $495, negotiated price $119 (76% decrease)
- Dapagliflozin (Farxiga): for type 2 diabetes, heart failure, and chronic kidney disease; original list price $556, negotiated price $179 (68% decrease)
- Etanercept (Enbrel): for rheumatoid arthritis; original list price $7,106 [$1,777 per weekly dose], negotiated price $2,355 (67% decrease)
- Empagliflozin (Jardiance): for type 2 diabetes and heart failure; original list price $573, negotiated price $197 (66% decrease)
- Ustekinumab (Stelara): for Crohn’s disease, ulcerative colitis, psoriasis, and psoriatic arthritis; original list price $13,836, negotiated price $4,695 (66% decrease)
- Rivaroxaban (Xarelto): to prevent blood clots and reduce risks for patients with coronary or peripheral artery disease; original list price $517, negotiated price $197 (62% decrease)
- Apixaban (Eliquis): to prevent stroke and blood clots; original list price $521, negotiated price $231 (56% decrease)
- Sacubitril/valsartan (Entresto): for chronic heart failure; original list price $628, negotiated price $295 (53% decrease)
- Ibrutinib (Imbruvica): for chronic lymphocytic leukemia/small lymphocytic lymphoma and other blood cancers; original list price $14,934, negotiated price $9,319 (38% decrease)
Source:MedpageToday
Since these prices only apply to Medicare, the question is if and how will manufacturers make up the loss.
QUINNSCOMMENTARY 
Here’s some interesting info on the price reductions:
https://www.powerlineblog.com/archives/2024/08/big-fakers-versus-big-pharma.php
The price reductions don’t go into effect until 2026 – and the drugs are going off patent and would have dropped in price significantly anyway.
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How do these negotiated prices compare with current Medicare prices? I take none of these, but is the real saving compared to now like $10?
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Yes, significant savings to Medicare beneficiaries – all designed to buy your vote. Always funny to me that no one asks who pays for the savings – did anyone think the Rx manufacturers or PBMs would take less, give up their BMW?
No, expect to see the same cost shift that occurs with Medicare Part A and Part B – where those who are not covered under Medicare pay 250+% more for the same services at the same facility compared to the Allowed Amount under Medicare, and well in excess of 300% for the same services at the same facility compared to the Allowed Amount under Medicaid.
To the extent that they can’t shift the losses on Medicare beneficiaries to others, expect them to find ways to cut back on development of new Rx – because, why take the risk if you can’t make the needed profits to stay in business? Instead, keep producing what you already have in place, where the margins and demand are known.
When Ms. Harris promises you $35 insulin and $2,000 out of pocket maximum for all, the cost shift won’t be possible, so, expect development to grind to a halt.
A couple of years later, expect to hear people repeat one of Reagan’s famous sayings:
“The nine most terrifying words in the English language are ‘I’m from the government and I’m here to help.’” or
“Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.”
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Let ’em charge more for drugs overseas ! They seem to sell them at a discount everywhere but here.
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