WASHINGTON, April 2 (Reuters) - The Biden administration
said on Tuesday it has responded to offers from the
manufacturers of 10 high-cost drugs selected for the U.S.
Medicare program's first-ever pricing negotiations, but provided
no details.
Part of 2022's Inflation Reduction Act allows Medicare to
negotiate prices for prescription drugs that had been
particularly expensive for the federal health program that
covers millions of Americans aged 65 and older as well as the
disabled.
The agency overseeing Medicare, the Centers for Medicare and
Medicaid Services (CMS), picked the first 10 drugs for
negotiation in August and sent its initial price offers in
February. The companies involved had until March 1 to respond
and all did so.
Each company can meet with CMS up to three times for further
negotiations before a final price is announced on Aug. 1. The
negotiated prices will come into effect in 2026.
Drugs made by Bristol Myers Squibb ( BMY ), Pfizer ( PFE ),
Merck & Co ( MRK ), Johnson & Johnson ( JNJ ), AbbVie ( ABBV ),
Amgen ( AMGN ), Boehringer Ingelheim, Eli Lilly ( LLY ), and
Novo Nordisk were selected for negotiation.
A federal judge in Delaware on March 1 rejected
AstraZeneca's lawsuit looking to block price
negotiations, marking the third time the Biden administration's
program has survived a court challenge.