Talks begin with pharma, health insurers over negotiating drug prices for Medicare
Dave Kotinsky

The federal government has begun talks with pharmaceutical companies and health insurers to start the process of negotiating prescription drug prices for Medicare, Reuters reported.
Speaking at the Reuters Events health conference, CMS Administrator Chiquita Brooks-LaSure said the agency has started discussions as part of setting up a framework for the negotiations.
"We're in the process of figuring out what questions people need answered from us, whether it's health plans who are trying to figure out how are they going to incorporate what we're doing into the benefits for people, thinking about the companies and how are they going to submit the data," she said.
Medicare prescription drug negotiation was included as part of the Inflation Reduction Act. CMS will first have the ability to negotiate for 10 medications -- likely the ones that cost Medicare the most -- which will increase to 20 in 2029.
The law also caps seniors' out-of-pocket expenses for prescription drugs at $2K annually and insulin costs at $35 a month.
Major pharma and biotech companies: Pfizer (NYSE:PFE), Merck (NYSE:MRK), Bristol-Myers Squibb (NYSE:BMY), Johnson & Johnson (NYSE:JNJ), Eli Lilly (LLY), Amgen (AMGN), and Regeneron Pharmaceuticals (REGN).
On Oct. 14, President Biden tasked HHS with finding additional ways to lower prescription drug costs.