Top 25 Medicare Part D Drug Prices See Nearly 100% Increase Since Market Introduction
A recent report from AARP reveals that the list prices for the top 25 prescription drugs covered by Medicare Part D have nearly doubled, on average, since their introduction to the market. This price growth has outpaced inflation rates, highlighting the impact on Americans aged 50 and over.
Following the signing of the Inflation Reduction Act by President Joe Biden in 2022, Medicare now has the authority to negotiate prescription drug costs. The Biden administration has already identified the first 10 drugs for negotiation, with estimated savings of $6 billion for Medicare in 2026.
While only certain drugs are eligible for negotiation, there is a possibility that some of the top 25 drugs may be included in future negotiations. These drugs have seen price increases of almost 100% since their launch, with lifetime increases ranging from 0% to 293%.
The importance of Medicare’s ability to negotiate drug prices and control annual price increases is emphasized by these findings. The Inflation Reduction Act also penalizes drug companies for exceeding inflationary price hikes.
Additionally, new measures including a $2,000 annual cap on out-of-pocket Part D costs, capped insulin prices for beneficiaries, and an expanded extra help program for low-income beneficiaries aim to alleviate the financial burden of prescription drug costs.
The changes are expected to make a significant difference to retirees when filling their prescriptions, ensuring better access to necessary medications without financial strain.