HHS Announces Dates for Medicare Drug Price Negotiation Program | Healthcare Innovation

According to a Jan. 11 press release, the U.S. Department of Health and Human Services (HHS) announced key dates for the first year of the Medicare Drug Price Negotiation Program under the Inflation Reduction Act, which will lower drug costs for millions of individuals in the U.S. Historically, this is the first time Medicare will be able to negotiate prescription drug prices due to the Inflation Reduction Act. The process begins in 2023 and the negotiated prices will go into effect in 2026.

The press release states that “For decades, Americans have spent more on prescription drugs than people in other countries—paying two to three times more for the same drugs. The Biden-Harris Administration has made lowering high prescription drug costs in America a key priority, and the Inflation Reduction Act makes changes to Medicare so that millions of people with Medicare will spend less on their prescriptions. For the first time ever, the HHS Secretary will be able to negotiate directly with drug manufacturers for prices of prescription drugs on behalf of Medicare, starting with a selection of 10 high-cost Medicare Part D drugs.”

Further, “Key dates for implementation include:

There have already been major provisions of the Inflation Reduction Act in effect already, including:

“CMS also released a memo with more details on the implementation steps for the Medicare Drug Price Negotiation Program, laying out the opportunities for engagement and public feedback throughout the implementation process,” the release adds. “The memo details multiple comment opportunities for members of the public, people with Medicare and consumer advocates, pharmaceutical manufacturers, Medicare Advantage and Part D plans, health care providers and pharmacies, and other interested parties.”

HHS Secretary Xavier Becerra was quoted in the release saying that “Under President Biden’s leadership, we will begin the process of negotiating lower prescription drug prices for millions of seniors and people with disabilities across the country. Thanks to the Inflation Reduction Act, we finally have the authority to get American families the lower prescription drug costs they deserve. Today we are releasing our plan for how we will implement Medicare drug price negotiation under this landmark law—and we will be transparent and aggressive in implementation every step of the way.”