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June 29, 2024

Biden administration to lower costs for 64 drugs through inflation penalties on drugmakers

The Biden administration recently announced plans to lower the cost of 64 select prescription drugs by penalizing drugmakers who have raised their prices above inflation. Some of the drugs that will be targeted by this action are insulin, arthritis treatments, and various forms of cancer drugs. This measure is part of a broader effort by the Biden administration to tackle rising drug prices in the United States, which are currently some of the highest worldwide. This comes after Mr. Biden’s larger drug pricing plan stalled in Congress. Pharmaceutical companies making those drugs will be fined if their prices rise faster than inflation, with the government using the fines collected to offset program spending further. It's interesting to note that the policy only applies to drugs dispensed through federal programs such as Medicaid. It remains to be seen how these penalties will impact the prices of these drugs or what backlash may result from the pharmaceutical industry. However, for now, the move is seen as a promising step towards lowering drug costs for American consumers and improving overall healthcare affordability.