US name first 10 drugs for price negotiations

US name first 10 drugs for price negotiations

Subject: Science and technology

Section: Health

Context: The Biden administration has released its list of 10 prescription medicines that will be subject to the first-ever price negotiations by the U.S. Medicare health program

More about the news:

• The Biden administration has announced that it will start negotiating the prices of 10 prescription medicines through the U.S. Medicare health program.
• This is the first time such negotiations will take place for Medicare, which provides healthcare coverage to around 66 million individuals.
• Medicines on the list include Merck & Co’s diabetes drug Januvia, Eliquis rival Xarelto from Johnson & Johnson , and AbbVie’s leukemia treatment Imbruvica.
• Other drugs on the list include Amgen’s rheumatoid arthritis drug Enbrel, Boehringer Ingelheim and Eli Lilly’s diabetes drug Jardiance, J&J’s arthritis and Crohn’s disease medicine Stelara and insulin from Novo Nordisk .
• The 10 initial drugs were chosen based on certain criteria set out by Medicare.

What is Inflation Reduction Act 2022:

• The Inflation Reduction Act of 2022 (IRA) is a landmark United States federal law which aims to curb inflation by reducing the deficit, lowering prescription drug prices, and investing into domestic energy production while promoting clean energy.
• It is a reduced version of the Biden administration’s proposed Build Back Better Act.
• At the end of a decade, according to Democrats, the U.S. will realize a deficit reduction of more than $300 billion while lowering inflation, investing in energy production, and reducing healthcare costs.
• Of the $737 billion in revenue raised, the legislation calls for $222 billion from a 15% corporate minimum tax.
• The legislation stands to be the single largest investment in climate and energy in the U.S. to date.