On Tuesday, the Biden administration announced the first 10 medications it will require pharmaceutical companies to negotiate prices on, as part of a provision passed in the Inflation Reduction Act (IRA) last year to lower drug costs, particularly for seniors.
Of the 10 drugs listed, four are for diabetes, while the remainder are for treating heart failure, psoriasis and arthritis, blood cancer, Crohn’s disease and other ailments. The drugs that are listed account for 20 percent of Medicare Part D prescription drug costs, and could collectively save seniors in the U.S. $25 billion per year on their out-of-pocket medication purchases.
“There is no reason why Americans should be forced to pay more than any developed nation for life-saving prescriptions just to pad Big Pharma’s pockets,” President Joe Biden said in a statement announcing the 10 drugs, adding:
For many Americans, the cost of one drug is the difference between life and death, dignity and dependence, hope and fear. That is why we will continue the fight to lower healthcare costs – and we will not stop until we finish the job.
Biden also lauded the announcement in a post on X, the social media site formerly known as Twitter. “We’re ending the days of deciding between buying your medicine or putting food on the table,” he said on his presidential account.
As part of the IRA, Congress granted the executive branch the authority to force pharmaceutical manufacturers to enter into negotiations with the federal government on some drugs. Additional medications, beyond these first 10, will be announced in the coming years, The New York Times reported.
Companies face severe financial consequences for refusing to negotiate — they could be subjected to a high excise tax, up to 95 percent of their total U.S. sales, for instance. A drug maker can opt out of negotiations, but only if they withdraw all of the medications they produce from both the Medicare and Medicaid programs.
The companies have until October 1 to decide what they’ll do, although several pharmaceutical companies, along with the U.S. Chamber of Commerce, are suing the Biden administration over the new standards, with hopes that federal courts will find them unconstitutional.
In spite of the lawsuits (eight in total so far), Biden said in his statement that he is “not backing down” from the plan to force the negotiations.
Although Democrats were largely celebratory over the announcement on Tuesday, advocates for health care reform have noted that negotiations on drug costs aren’t enough to help Americans struggling to afford medication or medical bills. New prices for drugs won’t come about for some time, too, as the negotiation process won’t start until February, and new drug prices won’t be implemented until 2026.
“This is a great first step, but every day we wait to pass universal healthcare with #MedicareForAll, 186 Americans die because they can’t afford the care they need,” Melanie D’Arrigo, executive director of the Campaign for New York Health, said in a post on X.
Help us Prepare for Trump’s Day One
Trump is busy getting ready for Day One of his presidency – but so is Truthout.
Trump has made it no secret that he is planning a demolition-style attack on both specific communities and democracy as a whole, beginning on his first day in office. With over 25 executive orders and directives queued up for January 20, he’s promised to “launch the largest deportation program in American history,” roll back anti-discrimination protections for transgender students, and implement a “drill, drill, drill” approach to ramp up oil and gas extraction.
Organizations like Truthout are also being threatened by legislation like HR 9495, the “nonprofit killer bill” that would allow the Treasury Secretary to declare any nonprofit a “terrorist-supporting organization” and strip its tax-exempt status without due process. Progressive media like Truthout that has courageously focused on reporting on Israel’s genocide in Gaza are in the bill’s crosshairs.
As journalists, we have a responsibility to look at hard realities and communicate them to you. We hope that you, like us, can use this information to prepare for what’s to come.
And if you feel uncertain about what to do in the face of a second Trump administration, we invite you to be an indispensable part of Truthout’s preparations.
In addition to covering the widespread onslaught of draconian policy, we’re shoring up our resources for what might come next for progressive media: bad-faith lawsuits from far-right ghouls, legislation that seeks to strip us of our ability to receive tax-deductible donations, and further throttling of our reach on social media platforms owned by Trump’s sycophants.
We’re preparing right now for Trump’s Day One: building a brave coalition of movement media; reaching out to the activists, academics, and thinkers we trust to shine a light on the inner workings of authoritarianism; and planning to use journalism as a tool to equip movements to protect the people, lands, and principles most vulnerable to Trump’s destruction.
We urgently need your help to prepare. As you know, our December fundraiser is our most important of the year and will determine the scale of work we’ll be able to do in 2025. We’ve set two goals: to raise $110,000 in one-time donations and to add 1350 new monthly donors by midnight on December 31.
Today, we’re asking all of our readers to start a monthly donation or make a one-time donation – as a commitment to stand with us on day one of Trump’s presidency, and every day after that, as we produce journalism that combats authoritarianism, censorship, injustice, and misinformation. You’re an essential part of our future – please join the movement by making a tax-deductible donation today.
If you have the means to make a substantial gift, please dig deep during this critical time!
With gratitude and resolve,
Maya, Negin, Saima, and Ziggy