Biden Administration Releases Revised Guidance For Medicare Drug Price Negotiation Amid Industry Lawsuits
Portfolio Pulse from Vandana Singh
The Centers for Medicare and Medicaid Services (CMS) has released revised guidance on its authority with pharmaceutical manufacturers in the Medicare Drug Negotiation Program. This year, Medicare will start negotiating directly with drug manufacturers to reduce the price of covered, high-cost prescription drugs. The first round of negotiations will occur between 2023 and 2024, with the negotiated prices effective from 2026. CMS will also cap insulin costs at $35 per month for people who get their insulin through Medicare Part B and Medicare Advantage starting July 1, 2023.
June 30, 2023 | 6:14 pm
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NEUTRAL IMPACT
Cigna Corporation may be impacted by the CMS's revised guidance on drug price negotiation, as it could potentially lower the cost of prescription drugs for Medicare patients.
As a health service company, Cigna Corporation could potentially benefit from lower drug costs for Medicare patients. However, the impact of the CMS's revised guidance on the company's bottom line is uncertain at this stage.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
CVS Health Corporation may be impacted by the CMS's revised guidance on drug price negotiation, as it could potentially lower the cost of prescription drugs for Medicare patients.
As a health service company, CVS Health Corporation could potentially benefit from lower drug costs for Medicare patients. However, the impact of the CMS's revised guidance on the company's bottom line is uncertain at this stage.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Quest Diagnostics may not be directly impacted by the CMS's revised guidance on drug price negotiation, as it primarily provides diagnostic testing services rather than prescription drugs.
Quest Diagnostics primarily provides diagnostic testing services and does not directly deal with prescription drugs. Therefore, the CMS's revised guidance on drug price negotiation may not have a significant impact on the company.
CONFIDENCE 80
IMPORTANCE 40
RELEVANCE 30
NEUTRAL IMPACT
Humana Inc. may be impacted by the CMS's revised guidance on drug price negotiation, as it could potentially lower the cost of prescription drugs for Medicare patients.
As a health insurance company, Humana Inc. could potentially benefit from lower drug costs for Medicare patients. However, the impact of the CMS's revised guidance on the company's bottom line is uncertain at this stage.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Rite Aid Corporation may be impacted by the CMS's revised guidance on drug price negotiation, as it could potentially lower the cost of prescription drugs for Medicare patients.
As a drugstore chain, Rite Aid Corporation could potentially benefit from lower drug costs for Medicare patients. However, the impact of the CMS's revised guidance on the company's bottom line is uncertain at this stage.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
UnitedHealth Group may be impacted by the CMS's revised guidance on drug price negotiation, as it could potentially lower the cost of prescription drugs for Medicare patients.
As a health care company, UnitedHealth Group could potentially benefit from lower drug costs for Medicare patients. However, the impact of the CMS's revised guidance on the company's bottom line is uncertain at this stage.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Walgreens Boots Alliance may be impacted by the CMS's revised guidance on drug price negotiation, as it could potentially lower the cost of prescription drugs for Medicare patients.
As a pharmacy chain, Walgreens Boots Alliance could potentially benefit from lower drug costs for Medicare patients. However, the impact of the CMS's revised guidance on the company's bottom line is uncertain at this stage.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50