Home Health & Hospice Week

Industry Notes:

Drug Price Negotiation Test Kicks Off

Stand by to see the impact on your patients as Medicare undertakes a campaign to lower the cost of 10 drugs — but not for a while yet.

Under the Inflation Reduction Act enacted in August 2022, “Medicare is able to negotiate the prices of prescription drugs,” the Department of Health and Human Services notes in a release.

Timeline: Negotiations with participating drug companies over the price of 10 selected medications will occur in 2023 and 2024, and any negotiated prices will become effective beginning in 2026, HHS sets out. “Medicare drug price negotiation will result in lower out-of-pocket costs for seniors and will save money for American taxpayers,” the White House says in a release.

Drugmakers, meanwhile, are protesting the initiative. It will reduce spending in research and development, leading to fewer breakthroughs for lifesaving treatments, they argue.

But patient advocates praise the expected savings for patients’ out-of-pocket costs.

More information on the program is at www.cms.gov/ files/document/fact-sheet-medicare-selected-drug-negotiation-list-ipay-2026.pdf.

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