# First Medicare-negotiated drug prices announced under the Inflation Reduction Act

Date: 2024

On 15 August 2024 the [Biden](/people/env-person-joe-biden) administration and the [Centers for Medicare & Medicaid Services](/organizations/econ-org-us-cms) announced the first set of negotiated prices for ten high-spend Medicare Part D drugs, the inaugural use of the Inflation Reduction Act's drug-price-negotiation authority. CMS said the prices, effective in 2026, would have saved Medicare about $6 billion had they applied in 2023 and were estimated to cut beneficiaries' out-of-pocket costs by roughly $1.5 billion. The program marks a structural change to US prescription-drug pricing for seniors.

## People

- Joe Manchin: https://factrail.ai/people/joe-manchin

## Drivers

- Cost-of-Living Pressure: https://factrail.ai/drivers/econ-cost-of-living-pressure

## Sources

_Sources are listed on the canonical page._

## Methodology

https://factrail.ai/methodology

Canonical: https://factrail.ai/facts/econ-fact-medicare-drug-price-negotiation-2024