Inflation Reduction Act gives Medicare price negotiation power with pharmaceutical companies, price cuts on prescription drugs to go into effect in 2026
As a result of the Inflation Reduction Act, Montana seniors will pay less for 10 common prescription drugs. According to a press release from Montana Senator Jon Tester’s office, the law will give Medicare price negotiation power, meaning Medicare can directly negotiate costs of prescription drugs with pharmaceutical companies.
According to the release, the negotiations will begin Aug. 29 and resulting price cuts will go into effect in 2026.
“I am proud to have stood tough against large pharmaceutical corporations and successfully demand that they stop unnecessarily jacking up prices on folks across the state. Montanans sent me to Washington to deliver results, and I will continue to take on anyone to lower costs,” Sen. Tester stated in the release.
“The Inflation Reduction Act requires Medicare to negotiate drug prices, caps out-of-pocket prescription drug costs for Medicare patients at $2,000/year, caps the cost of insulin for Medicare patients at $35/month, and extends Affordable Care Act provisions to prevent price hikes for thousands of Montanans,” the release stated.
Medicare can now negotiate prices on the following prescription drugs:
Eliquis – an anticoagulant medication used to treat and prevent blood clots and to prevent stroke.
Jardiance – an antidiabetic medication used to improve glucose control in people with type 2 diabetes.
Xarelto – used to treat and prevent blood clots. May lower the risk of stroke, deep vein thrombosis (DVT), pulmonary embolism (PE), and similar conditions.
Januvia – used as a once-daily prescription pill that helps lower blood sugar levels in adults with type 2 diabetes.
Farxiga – used to treat type 2 diabetes. Also used to treat adults with heart failure and chronic kidney disease.
Entresto – is a fixed-dose combination medication for use in heart failure.
Enbrel – a biologic medical product that is used to treat autoimmune diseases.
Imbruvica – used to treat certain cancers (such as chronic lymphocytic leukemia/small lymphocytic lymphoma, Waldenstrom’s macroglobulinemia).
Stelara – used to treat adults 18 years and older with moderately to severely active Crohn’s disease.
Fiasp; Fiasp FlexTouch; Fiasp PenFill; NovoLog; NovoLog FlexPen; NovoLog PenFill – insulin.