“After all of this, what does success look like?” asked Peter Neumann, a professor of medicine at Tufts University.
It turns out, the answer to that question is not straightforward, but conceptually there are ways to get at it.
To save money, Medicare prices need to be lower than the prices that health plans already negotiate, minus the automatic discounts that drugmakers pay Medicare, she said. That’s because drugs chosen for negotiation are exempt from those automatic discounts of 10% to 20% in Part D.
Health plans already negotiate rebates that lower the price of Eliquis to $3,708 and Xarelto to $3,135, according to an analysis from Hernandez, so the Medicare negotiated price would need to be at least 10% to 20% lower than that to decrease Medicare spending on those drugs.
“But the drug pricing provisions in the Inflation Reduction Act ended up being much more modest than advocates had hoped.”
www.statnews.com
Pay wall . . .
It turns out, the answer to that question is not straightforward, but conceptually there are ways to get at it.
To save money, Medicare prices need to be lower than the prices that health plans already negotiate, minus the automatic discounts that drugmakers pay Medicare, she said. That’s because drugs chosen for negotiation are exempt from those automatic discounts of 10% to 20% in Part D.
Health plans already negotiate rebates that lower the price of Eliquis to $3,708 and Xarelto to $3,135, according to an analysis from Hernandez, so the Medicare negotiated price would need to be at least 10% to 20% lower than that to decrease Medicare spending on those drugs.
“But the drug pricing provisions in the Inflation Reduction Act ended up being much more modest than advocates had hoped.”
![www.statnews.com](/community/proxy.php?image=https%3A%2F%2Fwww.statnews.com%2Fwp-content%2Fuploads%2F2024%2F07%2FGettyImages-1646850726-1024x576.jpg&hash=90e22cf0f7e2c82bfdc66656679d1e62&return_error=1)
How to tell if Biden drove a hard bargain on drug prices
Drug prices in other countries and the value that treatments deliver for patients are among the ways to figure out if Medicare struck good deals with pharma compaies.
![www.statnews.com](/community/proxy.php?image=https%3A%2F%2Fwww.statnews.com%2Fwp-content%2Fuploads%2F2023%2F06%2Fcropped-STAT-Favicon-Round-32x32.png&hash=6e78c49f24b7679fdaf40296b517f093&return_error=1)
Pay wall . . .
![www.statnews.com](/community/proxy.php?image=https%3A%2F%2Fwww.statnews.com%2Fwp-content%2Fuploads%2F2021%2F05%2Fstat-plus-meta-img-1024x576.jpg&hash=3abe897a88800e54c70bf8158b06ca29&return_error=1)