Medicare Drug Price Savings Obscured by Health-Care Complexities

The lowered drug prices negotiated between the Biden administration and major pharmaceutical companies and announced Thursday are leaving industry observers skeptical about the extent of savings and benefits to patients.

The US government expects Medicare to save $6 billion on the 10 high-cost medications selected for the first round of negotiations with drugmakers. The government also projects patients will save $1.5 billion from the deals, claiming victory over some of the costliest drugs for treating heart failure, diabetes, and other conditions.

Yet the true extent of savings remains murky because the government is comparing a drug’s negotiated price against its ...