Drugmakers penalized, resulting in lower costs for older Americans medications

The Biden administration announced Thursday that hundreds of thousands of elderly Americans will be able to pay less for some outpatient medication treatments beginning early next year.

The White House released a list of 48 pharmaceuticals, some of which are injectable cancer treatments, whose prices have risen faster than the rate of inflation this year. Because of the price rises, drugmakers will be required to pay rebates to the federal government under a new law. The funds will be used to reduce the cost of the drugs for Medicare participants early next year.

The penalties for outpatient drug treatments will be imposed for the first time under the Inflation Reduction Act, which was passed by Congress last year. The rebates will result in a wide range of savings ranging from $1 to $2,700 on drugs that the White House estimates 750,000 older Americans use each year.

Drugmakers penalized, resulting in lower costs for older Americans medications

The rebates are “an important tool to discourage excessive price increases and protect people with Medicare,” said Chiquita Brooks-LaSure, administrator of the Centers for Medicare and Medicaid Services, in a statement on Thursday.

As it prepares for reelection in 2024, the Biden administration has launched a series of initiatives to pressure pharmaceutical corporations to cut prescription prices. The White House said last week that it was considering a bold, unprecedented new tactic: removing the patents on some pharmaceuticals that are priced out of reach for the majority of Americans.

“On no. “We’ve upset Big Pharma yet again,” the White House said last week on the social media network X, formerly Twitter.

On Thursday, the US Department of Health and Human Services released a study that will help steer its first-ever negotiation process with drugmakers over the price of ten of Medicare’s most expensive pharmaceuticals. HHS will negotiate new prices for certain medications next year.

Drug firms are expected to be a frequent punching bag for Biden’s campaign as the negotiations take place in the thick of next year’s presidential campaign. The president intends to make attempts to reduce medicine prices a prominent issue of his reelection campaign. He is scheduled to speak about the topic further later today at the National Institutes of Health Clinical Center in Washington, D.C.

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