Biden Proposes Expansion of Medicare Drug Price Negotiation Program

- President Joe Biden advocates for Medicare to negotiate prices for at least 50 prescription drugs annually, up from the current target of 20.
- This proposal was included in Biden's State of the Union address roadmap.
- The plan aims to cover essential medications for conditions like heart disease, cancer, and diabetes.
- The Inflation Reduction Act currently allows Medicare to negotiate prices for up to 20 drugs, with the number rising to 20 per year starting in 2029.
- The Biden administration has already selected the first 10 medications for negotiation, which will be effective from 2026 onward.
- The proposed expansion could save taxpayers billions of dollars and improve accessibility to critical medicines.
- The White House did not specify whether the new target would apply immediately or gradually increase over time.
- The proposal faces potential challenges due to divided Congress and fierce industry opposition.
- Other healthcare policy initiatives include capping Medicare copayments at $2 for common generic drugs, expanding rebate policies to commercial drugs, and promoting competition in health care markets.