- Federal Employee's Retirement Planning Guide - https://fedretire.net -

Prescription Drug Costs – Major Price Cuts Coming

Share [1]

The President recently announced three agreements with Pfizer, AstraZeneca, and EMD Serono to reduce American drug prices dramatically. These prices are in line with the lowest prescription drug prices in other developed nations (known as the most-favored-nation, or MFN, price).

EMD Serono’s cost reductions for its fertility drugs will result in substantial savings on fertility treatments.

[2]

AstraZeneca Drugs

AstraZeneca medicines [3] treat nine million American patients, and they will benefit from the successful negotiation to lower prices. The millions of Americans who suffer from asthma and chronic obstructive pulmonary disease (COPD) could benefit from these price reductions.

AstraZeneca Drug Cost Reductions:

Pfizer Drugs

Americans will realize tangible cost savings [4] in the healthcare system as a whole. Taken together, more than 100 million patients are impacted by the diseases Pfizer’s medicines treat, and many of those will benefit from the President’s successful negotiation of lower prices for Americans.

Drug Cost Reductions:

OPM Releases 2026 FEHB / PSHB Premiums [5]

EMD Serono

This agreement [6] is with one of the world’s leading manufacturers of fertility medications. Significant price reductions are now available for the following drugs:

Drug Cost Reductions:

The Centers for Medicare and Medicaid Services estimates that women can save up to $2,200 per cycle of fertility drugs as a result of this deal on drugs that often cost over $5,000. Fertility drugs represent almost 20% of the total cost of a fertility treatment cycle.

The agreement also provides that EMD Serono will offer other medicines at a deep discount when selling directly to American patients, guarantee MFN prices on all new innovative drugs that come to market, and provide every State Medicaid program in the country access to MFN drug prices on EMD Serono products.

EMD Serono will invest in manufacturing in the United States, including manufacturing IVF drugs here for the first time, on the timelines agreed to in the deal.

Pricing Impact

The agreement will provide every State Medicaid program in the country access to MFN drug prices on these drugs, resulting in many millions of dollars in savings and strengthening the program for the most vulnerable.

The agreement requires all three companies to offer medicines at a deep discount off the list price when selling directly to American patients.

Additional Benefits

AstraZeneca announced that it will invest $50 billion in U.S. manufacturing and research and development by 2030. The company is building a new facility in Charlottesville, Virginia, which will produce advanced pharmaceutical ingredients to support its chronic disease and oncology pipelines.  The Virginia facility is projected to create 3,600 highly skilled jobs.

Final Note

It’s about time someone addressed the disparity between the cost of drugs overseas and in Canada compared to what we were paying in America! These bold actions are working and should result in reduced health care costs across the board, as the administration continues its push to reduce costs wherever possible.

More agreements are forthcoming, and overall, we should all realize significant savings on prescription drugs as these initiatives are launched.

Helpful Retirement Planning Tools

[7]

[17]
Disclaimer: The information provided may not cover all aspects of unique or special circumstances.  Federal regulations, medical procedures, investment information, and benefit details are subject to change. To ensure the accuracy of this information, contact relevant parties for assistance, including OPM’s retirement center. Over time, various dynamic economic factors relied upon as a basis for this article may change.

The information contained herein may not be suitable for your situation. This service is not affiliated with OPM or any federal entity. You should consult a financial, medical, or human resource professional where appropriate. Neither the publisher nor the author shall be liable for any loss or other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Last 5 posts by Dennis Damp