5 facts to know about Medicare drug price negotiation

  For far too long, pharmaceutical companies have set astronomically high prescription drug prices in the United States, resulting in millions of Americans being unable to access the medications they need. In 2023, more than 80 percent U.S. adults believe the cost of prescription drugs is unreasonable, with roughly 1 in 3 older Americans reporting that they cannot afford to take their medications as prescribed. The Inflation Reduction Act empowered the secretary of Health and Human Services (HHS), for the first time, to directly negotiate prices for select Medicare drugs. On August 29, 2023, the Centers for Medicare and Medicaid Services (CMS) announced the first 10 Medicare Part D drugs that will be subject to price negotiation, with negotiated prices to take effect in 2026.