Harris, Biden team up to hail federal deal for lower Medicare drug prices

President Biden and Vice President Kamala Harris touted cuts in medical costs under their administration in their first joint appearance Thursday since she replaced him atop the Democratic ticket.

The pair announced new Medicare discounts on 10 popular and expensive drugs, which could offer significant savings for consumers when they go into effect in 2026.

“We believe deeply that every senior in our nation should be able to live with security, stability and dignity,” Ms. Harris told supporters at an event in Largo, Maryland, a Washington suburb. “No senior should have to choose between either filling their prescription or paying their rent.”

The event was also a symbolic passing of the torch from Mr. Biden to Ms. Harris, now the Democratic presidential nominee after party delegates voted her in online.

Mr. Biden hailed his vice president, calling her an “incredible partner” and predicting that Ms. Harris would be “one hell of a president.”

The government’s power to negotiate down drug prices through Medicare was part of Mr. Biden’s Inflation Reduction Act in 2022.

Though the prices won’t take effect for over a year, Democrats are eager to crow about progress against high costs in an election year dominated by talk of pocketbook pressures and inflation.

“It’s not just about health care, it’s about your dignity. It’s about your peace of mind. It’s security. It’s about taking care of your family,” Mr. Biden said. “Too many Americans can’t afford the drugs they badly need for life and death.”

The program will negotiate down the cost of at least 10 drugs starting in 2026 before expanding to 15 drugs the following year and, incrementally, more drugs in successive years.

Additional drugs from Medicare Part D and the doctor-administered Part B program will be selected in subsequent years.

The Congressional Budget Office estimates the drug-negotiation program will save taxpayers $100 billion through 2031 while modestly curtailing the share of new drugs coming to market by around 1%. It predicted about $3.7 billion in the first year of the program, meaning administration estimates would exceed the projection.

The drugs selected in the first round were Eliquis by Bristol Myers Squibb, Jardiance by Boehringer Ingelheim, Xarelto by Janssen Pharmaceuticals, Januvia by Merck, Farxiga by AstraZeneca, Entresto by Novartis, Enbrel by Immunex Corp., Imbruvica by Pharmacyclics LLC, Stelara by Janssen Biotech and a series of insulins made by Novo Nordisk — Fiasp, Fiasp FlexTouch, Fiasp Penfill, NovoLog, NovoLog FlexPen and NovoLog Penfill.

The savings estimates are based on what would have happened if negotiated prices had been in effect in 2023. The negotiated prices are a 38% to 79% discount from the original list price, depending on the drug.

The administration said 1.8 million Medicare enrollees used Jardiance, a diabetes drug, making it the most commonly used prescription on the list.

Its list price of $573 for a 30-day supply was negotiated down to $197, a 66% cut, according to the Centers for Medicare and Medicaid Services.

Another diabetes drug, Januvia, was negotiated down to $113 from $527, a 79% drop, and insulin products on the list dropped to $119 from $495, or 76%.

Some decreases were less drastic as a percentage, though they involved higher dollar amounts.

Imbruvica, which treats blood cancers, dropped to $9,319 for a 30-day supply from $14,934, a 38% cut.

The pharmaceutical industry hates the program and sued to try and stop it.

They say the process is akin to extortion — not negotiation — because drugmakers have no choice but to accept price talks or else withdraw from the robust Medicare program that enrolls more than 60 million seniors.

The industry and Republican allies say Mr. Biden’s program amounts to socialist-style price setting and will lead to fewer cures coming to market.

Former President Donald Trump, the Republican presidential nominee, is pushing alternate ways to reduce costs for seniors, including zero taxes on Social Security benefits.

The Pharmaceutical Research and Manufacturers of America, an industry lobby, said consumers will be disappointed because the program doesn’t target middlemen, known as pharmacy benefit managers, who play a key role in setting prices.

“There are no assurances patients will see lower out-of-pocket costs because the law did nothing to rein in abuses by insurance companies and PBMs who ultimately decide what medicines are covered and what patients pay at the pharmacy,” PhRMA CEO Steve Ubl said.