Medicare drugs prices negotiations could result in ‘billions in savings’

ST. PAUL, Minn. (FOX 9) - 10 of the most popular and expensive prescription drugs are about to get cheaper for Americans.

For the first time in two decades, Medicare was allowed to negotiate pricing on drugs used by almost nine million Americans.

The new prices don’t kick in until 2026 and some people are concerned "big pharma" will get its money somewhere.

But prices for Eliquis, Jardiance, Xarelto, Januvia, Farxiga, Entresto, Enbrel, Imbruvica, Stelara, and Fiasp will go down anywhere from 38% to 79%, so it could be a big deal, especially for older Americans on a fixed income.

"It saves the taxpayers billions of dollars," said President Joe Biden in a Thursday rally appearance.

Older adults could save $1.5 billion a year in out-of-pocket medication costs under a new price structure for ten commonly prescribed drugs.

"This is a game-changer, a game-changer for our country," said Sen. Amy Klobuchar, (D-Minnesota).

Klobuchar authored the bill allowing Medicare to negotiate prices like private insurers do.

As a result, managing diabetes and blood cancers, and preventing heart failure or blood clots won’t be as expensive.

However, some people wonder how much they’ll really save.

"The concern is that the cost is just going to switch over from the pharmaceutical to the insurance and push up the insurance," said Jane Tyson outside a CVS in Eden Prairie.

Pharmaceutical company lobbyists said increased Medicare premiums will hit taxpayers as a result, even though Medicare stands to save $6 billion a year.

They also say this leaves them less money to invest in innovation.

The Congressional Budget Office (CBO) estimates this could prevent 13 drugs from coming to market in the next 30 years – or 1% of the expected number of new drugs.

"The pharmaceuticals need the money to develop new drugs," said David Tyson. "But there's got to be a better solution to how we are paying so much more than other countries."

Americans do typically pay a lot more for prescription drugs than people in other countries.

For example, when Bristol Myers Squibb introduced Eliquis in 2013, a year’s supply cost $3,100 in the U.S. compared to $1,000 in Japan.

Today, the price has more than doubled in the U.S., while declining in Japan.

Even after the newly negotiated prices, American patients will still pay more than three times what they pay in Japan.

"I can't speak to what they are in other countries," Sen. Klobuchar said. "But it is such a significant price reduction that it's going to be a game changer for Americans across the country. And this is just the beginning."

Negotiations will expand to as many as 160 prescription drugs.

Medicare can negotiate prices for another 15 of them next year.