US Reaches Deal to Cut Prices on 10 Medications

Health and Human Services announced price cuts for 10 drugs covered under Medicare, expected to save $1.5 billion in out-of-pocket costs for beneficiaries.

President Joe Biden speaks to participants of the White House Creator Economy Conference in the Indian Treaty Room in the Eisenhower Executive Office Building in Washington, on Aug. 14, 2024. Anna Moneymaker/Getty Images

The Department of Health and Human Services (HHS) has announced that it has successfully negotiated lower prices for 10 of the most expensive and widely used drugs covered under Medicare.

“For the first time ever, Medicare negotiated directly with drug companies and the American people are better off for it,” HHS Secretary Xavier Becerra said in an Aug. 15 statement, adding that the new prices, set to take effect in 2026, are expected to save the Medicare program $6 billion in the first year and reduce out-of-pocket costs for Medicare beneficiaries by $1.5 billion.