Deal will cut prices of 10 of Medicare’s costliest drugs

UC economist says deal could result in huge savings for individuals

Americans with Medicare Part D prescription coverage and taxpayers are expected to save billions of dollars as a result of a deal the federal government struck with pharmaceutical companies, WLWT reported.

Erhardt, Erwin3

Erwin Erhardt

The government and pharmaceutical companies have agreed to reduce the prices of 10 of Medicare’s costliest drugs. The price cuts will take effect in 2026 and could lower costs for seniors by hundreds or even thousands of dollars a month.

“These are drugs that are used for more serious, very serious illnesses, actually — like blood cancer, heart disease, diabetes; arthritis is in there, too,” said Erwin Erhardt, PhD, an associate professor - educator in the economics department of the University of Cincinnati’s Carl H. Lindner College of Business.

Blood thinners Xarelto and Eliquis and diabetes drugs Jardiance and Januvia are among the drugs whose prices are slated to be cut.

“It's going to result, hopefully, in some huge savings for seniors 65 and older,” Erhardt said.

See more from WLWT.

Featured image at top: A pharmacist explains a woman's prescription to her. Photo/Rhoda Baer, National Cancer Institute via Unsplash

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