Medicare And Pharma May Not See Big Impact At First From Drug Negotiations

Axios: Medicare Drug Pricing Negotiations May Have A Limited Impact At First
Depending on who you ask, the first-ever Medicare drug negotiations announced yesterday will either mean huge pocketbook relief for seniors or the demise of America's pharmaceutical industry — but the immediate impact will likely be relatively small, experts told Axios. (Owens, 8/30)

The Washington Post: Pharma Companies Say Medicare Drug Negotiations Cost Them, But Stocks Rose 
Drugmakers unleashed a broadside at the Inflation Reduction Act as Medicare on Tuesday unveiled the first 10 drugs to face price caps under the law, but most affected companies won’t feel the sting for years. In one measure of the law’s projected impact, seven companies that each own at least one of the selected drugs saw their stock prices jump as trading began on Wall Street, and most ended the day in positive territory. Most of the drugs are already expected to face competition from cheaper generic versions within two years of the price caps taking effect in 2026, meaning the law will only slightly quicken the decline of their earnings. (Gilbert, 8/29)

Axios: What Medicare Spends On Drugs It Will Soon Negotiate
The Biden administration says the 10 medicines selected for the first round of negotiations cost Medicare $50 billion in the last year. The blood thinner Eliquis, made by Bristol Myers Squibb and taken by 3.7 million Medicare enrollees, cost the federal government more than $16 billion between June 2022 and May 2023. (Goldman, 8/30)

More about the 10 drugs that were chosen —

The Hill: Unexpected Drugs Make First Round Of Medicare Negotiations 
A few of the choices announced Tuesday were not foreseen by the projections. Entresto, a heart failure medication made by Novartis that was named by CMS on Tuesday for negotiation, had not shown up in projections. Up until recently, Medicare claims data had not indicated Entresto as being among the highest cost drugs covered by Part D, but use of the drug has risen substantially in recent years according to the company, which allowed it to anticipate CMS’s ultimate decision. (Choi, 8/29)

The Hill: 5 Things To Know About The First 10 Drugs Chosen For Medicare Negotiation 
This announcement essentially places the ball in the manufacturers’ court. Drugmakers will have until Oct. 1 to sign an agreement to negotiate — unless courts grant an injunction that could suspend the law pending decisions in myriad lawsuits. While companies have the option of opting out of negotiations, it’s unlikely many of those who were named Tuesday will forgo signing agreements. This would mean terminating their relationships with Medicare — a sizable source of income for the pharmaceutical industry — for all their medications covered by the program or facing excise tax penalties. (Choi, 8/29)

KFF Health News: 5 Things To Know About The New Drug Pricing Negotiations 
The Biden administration has picked the first 10 high-priced prescription drugs subject to federal price negotiations, taking a swipe at the powerful pharmaceutical industry. It marks a major turning point in a long-fought battle to control ever-rising drug prices for seniors and, eventually, other Americans. Under the 2022 Inflation Reduction Act, Congress gave the federal government the power to negotiate prices for certain high-cost drugs under Medicare. The list of drugs selected by the Centers for Medicare & Medicaid Services will grow over time. (Allen, Pradhan and Hilzenrath, 8/30)

How drug pricing will affect the 2024 presidential election —

CNBC: Medicare Pricing Deal To Play Key Role In Biden 2024 Campaign Pitch
President Joe Biden is placing a priority on reducing individual health-care costs as he seeks reelection in a country where medical spending accounts for 18.3% of the nation’s gross domestic product, according to the Centers for Medicare and Medicaid Services. (Kinery, 8/29)

Politico: ‘Go After It’: GOP Strategists Say Republicans Need To Hit Biden On Drug Pricing
As President Joe Biden touts the first 10 drugs subject to Medicare price talks, Republicans are searching for their own message that would resonate with voters on the downsides of his signature domestic achievement. Piggybacking on the pharmaceutical industry’s strategy, Republicans are working to persuade Americans that the Biden plan will stifle innovation and lead to price controls, several strategists say. (King, 8/29)

In related news —

The Boston Globe: Medicare Drug Price Negotiation Impact In Mass.
The state’s biopharma industry has stayed on the sidelines over the past year as a parade of drug giants based outside Massachusetts joined with the US Chamber of Commerce in filing lawsuits, contending the price negotiations permitted by the new law are unconstitutional. But biopharma leaders in Massachusetts have mounting concern that the Medicare negotiations and other measures to hold down costs have the potential to dampen state drug makers’ ability to raise money for research, expand their product pipelines, and hire workers. (Weisman, 8/29)

Iowa Public Radio: Sen. Grassley Pushes For Lower Drug Prices, But Says Government Price Negotiation Plan Is Hard To Swallow
On the same day the Biden administration announced plans to negotiate Medicare drug prices for ten medications, U.S. Sen. Chuck Grassley visited the Siouxland Community Health Center in Sioux City. Here officials stressed the importance of funding, dental care, and affordable prescriptions for a diverse group of patients. (Brummer, 8/29)

KFF Health News: A Move To Cut Drug Prices Has Patients With Rare Diseases Worried 
For people with cystic fibrosis, like Sabrina Walker, Trikafta has been a life-changer. Before she started taking the drug, she would wind up in the hospital for weeks at a time until antibiotics could eliminate the infections in her lungs. Every day, she would wear a vest that shook her body to loosen the mucus buildup. (Hawryluk, 8/30)