Illustration: Natalie Peeples/Axios
The first round of Medicare drug price negotiations reduced the cost of 10 widely used drugs — but not enough to match prices in six other developed countries, per a new study.
The big picture: Negotiated prices were 8% to 42% lower than the previous net prices before negotiation, the study found.
- That ranges from 8% for the diabetes drug Farxiga to 42% for another diabetes treatment, Januvia.
Yes, but: "All products remained more expensive in the U.S. than in other countries," the study found, apart from insulin, whose price was reduced by manufacturers.
- "However, the gap between U.S. and non-U.S. prices narrowed for all drugs," it adds.
The bottom line: CMS had estimated an overall reduction of 22% if these prices had been in effect.
- The study calls that "likely an overestimate of savings" because "manufacturers will not have to pay mandatory discounts to Medicare Part D for drugs selected for negotiation."
- It says more research is needed to determine how much of an overestimate it was.
What we're watching: Some high-ranking Republicans want to repeal the negotiations in the next Congress.
- The law requires the next president to negotiate prices for some drugs, but it's unclear how or whether the Trump administration will defend the law from pharmaceutical industry challenges in court.
