The Growing Success of Medicare Drug-Price Negotiation

The second round of Medicare drug price negotiations achieved average price reductions of 44% across 15 drugs, double the savings of the first round. These added savings may reflect both improvements in CMS’ negotiating strategy as well as the negotiation of more low-rebate drugs, such as cancer therapies, for which the savings potential is greater. Despite legal and political challenges, the authors conclude the program is delivering substantial savings and should be expanded to further improve drug affordability in Medicare.