NBC NEWS – List prices for the top 25 prescription drugs covered by Medicare Part D have nearly doubled, on average, since they were first brought to market, according to a new AARP report.
Moreover, that price growth has often exceeded the rate of inflation, according to the interest group, which represents Americans ages 50 and over.
The analysis comes as Medicare now has the ability to negotiate prescription drug costs after the Inflation Reduction Act was signed into law by President Joe Biden in 2022.
Notably, only certain drugs are eligible for those price negotiations.
The Biden administration in August released a list of the first 10 drugs to be included, which may prompt an estimated $6 billion in net savings for Medicare in 2026.
…article continued below
– Advertisement –
The Centers for Medicare & Medicaid Services is scheduled to announce by Feb. 1 the list of 15 Part D drugs selected for negotiation for 2027.
AARP studied the top 25 Part D drugs as of 2022 that are not currently subject to Medicare price negotiation.
However, there is a “pretty strong likelihood” at least some of the drugs on that list may be selected in the second line of negotiation, according to Leigh Purvis, prescription drug policy principal at AARP.
Those 25 drugs have increased by an average of 98%, or nearly doubled, since they entered the market, the research found, with lifetime price increases ranging from 0% to 293%.
Price increases that took place after the drugs began selling on the market were responsible for a “substantial portion” of the current list prices, AARP found.
…article continued below
– Advertisement –
The top 25 treatments have been on the market for an average of 11 years, with timelines ranging from five to 28 years.
The findings highlight the importance of allowing Medicare to negotiate drug prices, as well as having a mechanism to discourage annual price increases, Purvis said.
Under the Inflation Reduction Act, drug companies will also be penalized for price increases that exceed inflation …