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According to one study, the list prices of the top 25 prescription drugs covered by Medicare Part D have nearly doubled on average since they first went on the market. New AARP Report.
What’s more, interest groups representing Americans over 50 say their price increases are often outpacing inflation.
The analysis comes after Medicare gained the ability to negotiate the cost of prescription drugs after the Suppression of Inflation Act was signed into law by President Joe Biden in 2022.
In particular, only certain medicines are subject to these price negotiations.
In August, the Biden administration announced an initial list of 10 targeted drugs, which could result in an estimated $6 billion in net savings for Medicare in 2026.
The Centers for Medicare and Medicaid Services is expected to make an announcement by February 1. List of 15 Part D Drugs It has been selected for negotiation in 2027.
AARP looked at the top 25 Part D drugs in 2022 that are not currently subject to Medicare price negotiations. But Lee Purvis, AARP’s director of prescription drug policy, said it’s “very likely” that at least some of the drugs on that list will be selected on the second line of negotiations.
The study found that these 25 drugs have increased in price by an average of 98%, or nearly double, since their entry into the market, with lifetime price increases ranging from 0% to 293%.
AARP found that price increases that occurred after the drug began being sold on the market accounted for a “substantial portion” of the drug’s current list price.
The top 25 treatments have been on the market for an average of 11 years, ranging from 5 to 28 years.
Purvis said the findings highlight the importance of allowing Medicare to negotiate drug prices and having a mechanism to prevent annual price increases. Under the Inflation Control Act, drug companies will also be subject to penalties for price increases that exceed inflation.
Specifically, a new $2,000 annual cap on Part D prescription drug out-of-pocket costs goes into effect this year. Beneficiaries also have the option of spreading these costs over the year rather than paying them all at once. The cap on insulin for Medicare beneficiaries is $35 per month.
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Purvis said these caps will help people who previously spent more than $10,000 a year on Part D prescription drug costs.
“The fact that there are restrictions in place is very important to them, but it’s also very important to everyone,” Purvis said. “Because everyone could just get one very expensive prescription and not have to have a maximum out-of-pocket expense.”
The new law also Additional help programs Part D for low-income individuals.
“We often hear about people having to choose between splitting pills to make their medications last longer or buying groceries to fill prescriptions,” said Justice in Aging’s Federal Health Service. Director of Advocacy Natalie Keene said.
“Cost and prescription drug pressures are real, especially for low-income people who are struggling just to meet their daily needs,” Keene said.
Once the new changes go into effect, retirees should notice a noticeable difference when filling prescriptions, she said.
