President Joe Biden’s administration announced a policy proposal aiming to lower drug prices for the American public. The new proposal will enforce inflation penalties on pharmaceutical companies. These penalties will be applicable when companies increase drug prices at an annual rate above that of inflation.
The drugs chosen for this action are among the most expensive treatments and are used by millions of Americans. These drugs include insulin, used for diabetes, and Humira, an immunosuppressant used for conditions like rheumatoid arthritis and Crohn’s disease.
The main purpose of this initiative is to make medications more affordable for those who depend on them, by limiting excessive price increases from manufacturers. This comes as part of the Biden administration’s broader effort to reduce healthcare costs.
However, some critics argue that these penalties may not go far enough, as they do not directly lower the initial price set by drug manufacturers. Nonetheless, this move, once approved, could save the Medicare program billions of dollars.
This plan must still undergo a public comment period before it can be finalized. Please note that this is currently a proposal and is subject to change based on ongoing discussions and revisions.
