HHS announces dates for the Medicare Drug Price Negotiation Program
According to Jan 11th press releaseThe U.S. Department of Health and Human Services (HHS) has announced key dates for the first year of the Prescription Drug Price Negotiation Program under the Control Inflation Act, which will lower drug costs for millions of individuals in the United States Historically, this is the first time Medicare will be able to negotiate prices Prescription medications due to SCA. The process will start in 2023 and the negotiated prices will come into effect in 2026.
The press release states that “For decades, Americans have spent more on prescription drugs than people in other countries—paying two to three times more for the same drugs.” The Biden-Harris administration has made reducing high drug costs in America a major priority, and the law has introduced Lower inflation Changes to Medicare so millions of people with Medicare spend less on their prescriptions For the first time ever, HHS Secretary will be able to negotiate directly with drug manufacturers about prescription drug prices on behalf of Medicare, starting with a selection of 10 high-cost drugs from Medicare Part D.
Furthermore, “key implementation dates include:
- By September 1, 2023, CMS will publish the first 10 Medicare Part D drugs selected for the Medicare Drug Price Negotiation Program.
- The maximum fair, negotiated prices for these drugs will be announced by September 1, 2024 and prices will be effective January 1, 2026.
- In future years, CMS will choose to negotiate 15 more Part D drugs for 2027, 15 more Part B or Part D drugs for 2028, and 20 more Part B or Part D drugs for each year thereafter, as outlined in the Limit Act. from inflation. “
There were already key provisions in the Inflation Reduction Act already in effect, including:
- Free Vaccines: Recommended vaccinations are free for individuals covered by Medicare prescription drug coverage starting January 1, 2023.
- Insulin Cover: The cost to participate in a month’s supply of each covered insulin is set at $35 and there is no discount for these products for people with Medicare prescription drug coverage as of January 1, 2023
- Rebates required from manufacturers’ drug prices increasing faster than inflation: Manufacturers will need to pay rebates to Medicare if they increase prices of certain drugs at a rate that exceeds the rate of inflation
- ACA Benefits: More people will qualify for help buying affordable health coverage
- Biosimilars: In October of 2022, CMS implemented Medicare Part B payment changes for eligible biosimilars
CMS has also released a note with further details on the steps to implement the Medicare drug price negotiation program, outlining opportunities for public participation and feedback throughout the implementation process,” the statement adds. “The memo details multiple comment opportunities for members of the public, people with Medicare and consumer advocates, and pharmaceutical manufacturers. , Medicare Advantage and Part D plans, health care providers and pharmacies, and other interested parties.”
HHS Secretary Xavier Becerra was quoted in the statement as saying, “Under President Biden’s leadership, we will begin the process of negotiating lower prescription drug prices for millions of seniors and people with disabilities across the country. Thanks to the Inflation Control Act, we finally have the power to make American families less expensive.” The prescription drugs you deserve. Today we are releasing our plan for how Medicare drug price negotiation will be implemented under this landmark law—and we will be transparent and bold in our implementation every step of the way.”