Medicare Savings Hinge on Drug Prices Below Negotiated Levels

The Medicare agency may have to require drugmakers to charge less for their products than previously anticipated if it wants to reap the most savings possible from its new authority to negotiate the prices of drugs it spends the most on, according to research published Tuesday.

The research brief, published in the Journal of Managed Care & Specialty Pharmacy, estimated that minimum discounts, or reduced costs allowed under the Inflation Reduction Act, will only apply to four of the first 10 Part D drugs that analysts estimate will face Medicare-negotiated prices starting in 2026. This includes products like Astellas ...