Biden said Medicare should be allowed to negotiate prices for at least 50 drugs per year, up from the target of 20 drugs per year. That change would require congressional action, but White House officials said it could reduce federal spending by tens of billions of dollars annually. Since Medicare sets prices that influence what private insurers charge, it could lead to lower drug prices for Americans who aren’t covered by the program, too.
This is all still theoretical, though: The Biden administration’s drug price negotiations just began this year, targeting an initial slate of 10 drugs; the drug industry has filed multiple lawsuits to try to stop the initiative; and the new prices won’t take effect until 2026 at the earliest.
Before the speech, White House officials also ripped into health insurance plans that they said are “ripping off” average Americans by not covering preexisting conditions, among other loopholes. The administration is close to finalizing its rule that will limit the availability of these health plans, officials said.