We May Not Negotiate Prices for Ten Drugs After All

Source: The American Prospect
by David Dayen

“The day that the Biden administration revealed the first ten drugs under its Medicare price negotiation process, the companies that own and market those drugs saw their stock prices go up. ‘Today is a nonevent’, said one industry analyst. Part of this is because the actual negotiated prices won’t take effect until 2026, too far in the future for Mr. Market to blink an eye. But there’s another factor that has been highlighted: Some of the drugs are going to face generic competition before we ever get to 2026. If that competition is legitimate, those drugs will no longer be eligible for price negotiation. And under the rules of the law, the administration can’t select another drug to get the number back up to ten. All that means that the ten drugs being negotiated could be whittled down to eight, or six, or even fewer.” (09/11/23)