Drug prices negotiated by medicare vs US net prices and prices in other countries

The Inflation Reduction Act instructs Medicare to negotiate the prices of top-selling drugs, and sets statutory upper limits (“ceilings”) on negotiated prices.1 Medicare can negotiate prices below the ceilings based on how the prices and clinical benefits of these drugs compare to those of therapeutic alternatives.1 In August 2024, Medicare published the negotiated prices for the first 10 drugs selected for negotiation;2 these prices will come into effect in 2026 and will apply to all Medicare Part D plans. We analyzed how the negotiated prices compared to net prices prior to negotiation, ceiling prices, and list prices in 6 other high-income countries.