Biden, Harris hail lower Medicare drug prices and each other
President Joe Biden and Vice President Kamala Harris appeared together in Maryland, touting changes to Medicare's drug purchasing system and each other's credentials, as the pair settle into their new campaign roles.
President Joe Biden and Vice President Kamala Harris made a joint appearance in Maryland, not so far from Washington and the White House, on Thursday.
Nominally, it was to announce changes to the way Medicare acquires prescription drugs, with the government saying it drastically reduces the prices they're paying.
But the event also morphed into mutual praise and campaign rhetoric, as the pair shared a stage just a few weeks after Biden's decision to withdraw from the race and Harris emerging in his place.
"She can make one hell of a president," Biden said of his 2020 running mate, saying the goal for the November 5 vote was to "beat the hell out of" the Republican opponent.
Harris, meanwhile, delivered more brief remarks in a show of deference to the president, saying it had been her honor to serve under the "most extraordinary human being."
"There's a lot of love in this room for our president," Harris, set to be formally confirmed at the Democrats' party convention next week in Chicago, said.
US says Medicare can now source key drugs far more cheaply
Biden and Harris presented negotiated lower prices for 10 of the most commonly purchased prescription drugs used by Medicare—in one case, for what the US government claims to be a 79% savings.
The change was a part of the far-reaching "Inflation Reduction Act," signed into law in 2022, and the new prices should go into effect starting next year.
The US government estimates savings of approximately $6 billion (roughly €5.5 billion) in the first year alone.
What medication has the change impacted, and how much?
The biggest price drop listed by the government was for Merck and Co's diabetes drug Januvia, decreasing by 79%.
Novo Nordisk's insulin aspart products were set for the second-steepest fall, at 76%.
Eight other listed medications would be bought at rates cut by between 38% and 68%, according to the government.
The true extent of the savings made isn't transparent, though. The US government's price comparisons are against list prices for the drugs, not against whatever price Medicare had previously paid, information the government says it can't divulge.
However, the government says its estimated overall savings to spending do take the previous purchasing prices into account.
Medicare is a federal health insurance program in the US mostly for people over the age of 65, but also for younger people with disabilities. It's estimated to cover or partially cover more than 60 million people.
More than half of US voters in 2020 were aged 50 or older, so nearing the eligibility age for Medicare themselves.
Healthcare is estimated to account for about 8% of Americans' household spending, or around 16% of national GDP — making it the most expensive major developed economy in the world when seeking medical assistance.
People with health insurance in the US still typically have medical bills to pay, with prescriptions among these.
But the idea is that Medicare can at least pass list-price savings, or a share of them, on to end users.
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President Joe Biden and Vice President Kamala Harris appeared together in Maryland, touting changes to Medicare's drug purchasing system and each other's credentials, as the pair settle into their new campaign roles.
President Joe Biden and Vice President Kamala Harris made a joint appearance in Maryland, not so far from Washington and the White House, on Thursday.
Nominally, it was to announce changes to the way Medicare acquires prescription drugs, with the government saying it drastically reduces the prices they're paying.
But the event also morphed into mutual praise and campaign rhetoric, as the pair shared a stage just a few weeks after Biden's decision to withdraw from the race and Harris emerging in his place.
"She can make one hell of a president," Biden said of his 2020 running mate, saying the goal for the November 5 vote was to "beat the hell out of" the Republican opponent.
Biden, Harris hold first event since candidate switch 05:01
Harris, meanwhile, delivered more brief remarks in a show of deference to the president, saying it had been her honor to serve under the "most extraordinary human being."
"There's a lot of love in this room for our president," Harris, set to be formally confirmed at the Democrats' party convention next week in Chicago, said.
US says Medicare can now source key drugs far more cheaply
Biden and Harris presented negotiated lower prices for 10 of the most commonly purchased prescription drugs used by Medicare—in one case, for what the US government claims to be a 79% savings.
The change was a part of the far-reaching "Inflation Reduction Act," signed into law in 2022, and the new prices should go into effect starting next year.
The US government estimates savings of approximately $6 billion (roughly €5.5 billion) in the first year alone.
Although the event in Largo, Maryland was formally meant to introduce new policy coming into effect, developments of the past few weeks in the campaign also featuredImage: Elizabeth Frantz/REUTERS
Chants of "thank you, Joe" could be heard as Biden addressed the community college crowd in the city of Largo.
"We finally beat Big Pharma," Biden said at the event.
Industry, Republicans had resisted the changes
"My entire career, I have worked to hold bad actors accountable and lower the cost of prescription drugs," Harris said. "Medicare can use that [collective bargaining] power to go toe-to-toe with Big Pharma and negotiate lower drug prices."
Harris had to cast the Vice President's special 101st vote in the Senate — the last-resort tie-breaking mechanism if a Senate vote is locked at 50-50 — in order for the changes to come into effect, after no Republican Senators supported it.
She stressed this in Largo on Thursday, as Democrats seek to portray themselves as the party trying to keep people's medical bills down.
Republicans alleged that the changes amounted more to "price-fixing," arguing it could ultimately drive prices higher, and supporting industry lobbyists' warnings about it discouraging research and innovation on new medications.
Chants of "thank you, Joe" could be heard as Biden addressed the community college crowd in the city of Largo.
"We finally beat Big Pharma," Biden said at the event.
Industry, Republicans had resisted the changes
"My entire career, I have worked to hold bad actors accountable and lower the cost of prescription drugs," Harris said. "Medicare can use that [collective bargaining] power to go toe-to-toe with Big Pharma and negotiate lower drug prices."
Harris had to cast the Vice President's special 101st vote in the Senate — the last-resort tie-breaking mechanism if a Senate vote is locked at 50-50 — in order for the changes to come into effect, after no Republican Senators supported it.
She stressed this in Largo on Thursday, as Democrats seek to portray themselves as the party trying to keep people's medical bills down.
Republicans alleged that the changes amounted more to "price-fixing," arguing it could ultimately drive prices higher, and supporting industry lobbyists' warnings about it discouraging research and innovation on new medications.
US Democrats move to back Harris in presidential race 02:32
What medication has the change impacted, and how much?
The biggest price drop listed by the government was for Merck and Co's diabetes drug Januvia, decreasing by 79%.
Novo Nordisk's insulin aspart products were set for the second-steepest fall, at 76%.
Eight other listed medications would be bought at rates cut by between 38% and 68%, according to the government.
The true extent of the savings made isn't transparent, though. The US government's price comparisons are against list prices for the drugs, not against whatever price Medicare had previously paid, information the government says it can't divulge.
However, the government says its estimated overall savings to spending do take the previous purchasing prices into account.
Medicare is a federal health insurance program in the US mostly for people over the age of 65, but also for younger people with disabilities. It's estimated to cover or partially cover more than 60 million people.
More than half of US voters in 2020 were aged 50 or older, so nearing the eligibility age for Medicare themselves.
Healthcare is estimated to account for about 8% of Americans' household spending, or around 16% of national GDP — making it the most expensive major developed economy in the world when seeking medical assistance.
People with health insurance in the US still typically have medical bills to pay, with prescriptions among these.
But the idea is that Medicare can at least pass list-price savings, or a share of them, on to end users.
.jpg)
Big Pharma push back on first Medicare drug price cuts
New York (AFP) – Major pharmaceutical companies lashed out following a landmark deal unveiled Thursday to cut the costs of 10 key medicines, with some saying the price-setting process was not transparent.
Issued on: 15/08/2024
Issued on: 15/08/2024
Their statements came after US President Joe Biden and Vice President Kamala Harris announced a deal to lower costs of the first 10 drugs picked for Medicare price talks.
The agreement with drugmakers -- who said they came on board with negotiations as they had no choice -- is set to save seniors in the United States $1.5 billion in out-of-pocket costs.
It is the result of months of negotiations and is anticipated to save Medicare $6 billion in the first year alone, said Biden, referring to the federal health insurance for seniors.
While the announcement is a likely boon for Democratic presidential candidate Harris as she works on her economic messaging ahead of November's election, pharmaceutical companies have long resisted the cuts.
The US government is initially limited to picking 10 drugs for price talks and can expand the program in subsequent years.
'Not objective'
The agreements come on the back of the Inflation Reduction Act (IRA), a major package of energy transition policy and social reforms.
The White House announced a deal to lower costs of 10 key medicines selected for Medicare price negotiations, cutting their list prices by between 38 percent and 79 percent
© SCOTT OLSON / GETTY IMAGES NORTH AMERICA/AFP/File
This allowed Medicare to start negotiating drug costs for the first time in its nearly 60-year existence.
Novartis, whose heart failure treatment Entresto is among the 10 selected medicines, pushed back against the price-setting process as "not objective or transparent."
"Novartis believes the price-setting provisions in the IRA are unconstitutional and will have long-lasting and devastating consequences," the company added in a statement.
It said it agreed to a "maximum fair price" only to "avoid other untenable options including catastrophic fines or the removal of all our products from both Medicare and Medicaid."
For the 10 selected drugs, discounts from 2023 prices range from 38 percent to 79 percent. The new costs will take effect in 2026.
Besides Entresto, the drugs include Farxiga by AstraZeneca used against diabetes, as well as anticoagulant Eliquis -- used by millions of Medicare beneficiaries.
AstraZeneca said in a separate statement that it accepted the price, as "walking away is not an option."
If a manufacturer refused to accept the price, access for Medicare and Medicaid patients could be compromised, it said.
Patient costs?
Companies also warned that patients could still face higher costs and argued that the deal undervalued their products.
Bristol Myers Squibb (BMS), which is behind Eliquis, cautioned that "insurance plans and their pharmacy benefit managers are ultimately responsible for what patients will pay."
"The IRA does not protect patients from potential increases to their cost sharing or restrictions in access" to Eliquis once the maximum fair price goes into effect in 2026, the company added.
CFRA analyst Sel Hardy, however, noted that BMS management seemed confident it could navigate the impact of the IRA on Eliquis.
A Johnson & Johnson spokesperson called the law arbitrary and lacking in scientific approach.
This "undervalues the benefit our medicines deliver to millions of patients," J&J said.
'Historic milestone'
US residents face the highest prescription drug prices globally, leaving many people to pay partially out of their own pockets despite already exorbitant insurance premiums.
The new deal was reached after Democrats pushed for the government to be able to negotiate prices directly with drug manufacturers for federal health programs.
The White House said the agreement for lower prices is a "historic milestone."
"The vice president and I are not backing down," Biden said in a Thursday statement.
His comments came ahead of a first joint public event with Harris since she replaced him as the Democratic candidate in the upcoming election.
"We will continue the fight to make sure all Americans can pay less for prescription drugs and to give more breathing room for American families," he said.
Rising costs of living are a key issue for the 2024 election.
Last October, drugmakers behind the selected medicines for serious illnesses grudgingly agreed to negotiate on cutting prices.
© 2024 AFP
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