Every other developed country in the world negotiates drug prices on behalf of its citizens. The US has not. Here is a summary from AARP of the provisions in the legislation passed by the senate this week to negotiate drug prices. It is a good start.
“Part D changes
For the first time, out-of-pocket costs for Part D prescription drugs would be capped. Starting in 2025, beneficiaries would not have to pay more than $2,000 a year for their share of Part D drugs.
Beginning in January, most vaccines would be free in Medicare.
Part D premiums could not increase more than 6 percent a year through at least 2029. The income threshold for beneficiaries to qualify for a subsidy to help pay for Part D out-of-pocket costs would be increased from 135 percent of the federal poverty level ($18,347 for an individual in 2022) to 150 percent ($20,385 for an individual in 2022).
Negotiating drug prices
The Health and Human Services secretary would be authorized to begin negotiating the prices of 10 high-cost prescription drugs in 2023, and the negotiated prices would go into effect in 2026 for Medicare Part D medications and 2028 for drugs covered under Medicare Part B. The number of drugs whose prices would be negotiated on behalf of Medicare would increase in subsequent years, and by 2029 a total of 60 drugs would be subject to negotiated prices.”
I only have two comments. Implementation is too slow and we should negotiate all drug prices. It is a beginning. My wife has an expensive chronic illness and this effort will make a big difference for my family. This legislation is very important for patients who need optimal medical therapy. Taking the best practice medications can help patients avoid very expensive hospital stays.
Looking at PBMs drug rebates in 2021, according to TX data, only $11.9 M (0.2%) out of $5.7B Imanufacturers payments go back to patients, and the rest goes back to plans.
https://www.drugchannels.net/2022/08/texas-shows-us-where-pbms-rebates-go.html?m=1&s=09
Thank goodness something has finally begun to happen. But I agree, far too little and it has and is taking far too long to become a reality. Glad this will be directly beneficial for your family. 🙏🏻