US Drugmakers Agree to Negotiate Prices With Federal Govt

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Facts

  • The Biden administration announced on Tuesday that major US drug companies had committed to participating in Medicare price negotiations with the federal government, with 10 initial prescription drugs named as part of the program.1
  • The first 10 drugs to be initially involved in negotiations — scheduled to end on Feb. 1, 2024 — include Eliquis, Januvia, Xarelto, and Stelara. Prices will be required to be at least 25% lower than current listings.2
  • Negotiated prices don't come into effect until 2026. Speaking in a video, Biden accused drug manufacturers in America of making 'record profits while big pharma worked to block medicare,' stating that his administration had 'finally t[aken] a step to change that.'3
  • The White House claimed that approximately 9M individuals paid over $3.4B on the 10 prescription drugs in 2022. The drugs intended to be involved in the program were first announced by the Centres for Medicare and Medicaid Services in August, with manufacturers having until Oct. 3 to agree to the proposal.4
  • Medicare, a health insurance program for Americans over 65, is applicable for price negotiations following US President Joe Biden's passing of the Inflation Reduction Act in 2022. The legislation, while legally limiting initial discussions to 10 drugs, allows scope for expansion in subsequent years.5
  • The news comes after the Southern District of Ohio blocked an attempt by the US Chamber of Commerce to implement a preliminary injunction against the program. The District claims that the initiative violated the Constitution and the separation of powers.6

Sources: 1NBC, 2Reuters, 3Abc news, 4Independent, 5Medicalxpress and 6CNBC.

Narratives

  • Pro-establishment narrative, as provided by Common dreams. While there is certainly division within America, the population broadly agrees that drug manufacturers have continued to take advantage of the healthcare system in order to create record profits. Corporate power must be regulated, and the system must listen to the demands of the people. Not only does this concern the abundant majority in favor of Medicare drug price negotiation, but all those who continue to suffer at the hands of Big Oil, Big Tech, and countless other companies.
  • Establishment-critical narrative, as provided by Duluth news tribune. While the Biden administration's Medicare drug price negotiation sounds positive, in reality, the Inflation Reduction Act is designed to force manufacturers to accept the will of the state. Consequently, to counter being strong-armed by the public sector, companies will reduce investment and their commitment to future life-saving medical breakthroughs. Legal action is needed to ensure that over-regulation does not stifle innovation.

Predictions