MEDICARE NEGOTIATIONS’ DAY IN THE SUN — The last week of August is typically a sleepy affair in Washington. But next Tuesday will likely be an aberration: The Biden administration is expected to unveil the first 10 prescription drugs selected for Medicare price negotiations. The release is anticipated before stock trading begins that day. The announcement kicks off the first direct negotiations between drugmakers and Medicare over a set of medicines — part of a decadeslong effort by Democrats to empower the government to take a role in the prices companies charge. What drugs are the finalists? While the Biden administration is keeping a close hold on that potentially market-moving information, plenty of analysts have taken a crack at identifying which drugs might be on the inaugural negotiation list based on the most recent Medicare spending numbers. The five drugmakers that have already sued the government over whether the negotiations program is unconstitutional also have tipped their hand on which products they expect to land on the list. Analysts with expertise in Medicare drug spending say the list will likely include the blood thinners Xarelto and Eliquis made by Johnson & Johnson and Bristol Myers Squibb, respectively; diabetes drugs Januvia and Jardiance made by Merck and Eli Lilly/Boehringer Ingelheim, respectively; and the cancer drug Xtandi produced by Pfizer/Astellas. The White House will hold a 2 p.m. gathering Tuesday on “lowering health care costs,†when President Joe Biden and other administration officials are expected to tout Medicare’s involvement in drug negotiations, which is expected to save the program billions of dollars and lead to lower prices for consumers. Biden seeks to sell health policies like the new Medicare negotiations program as part of a broader “Bidenomics†agenda set to underpin his reelection campaign. The drug pricing push, he argues, will help counter inflation and boost the economy by slashing the amount Americans shell out each year for critical medicines, although prices negotiated on the first set of drugs won’t take effect until 2026 per the Inflation Reduction Act enacted last year. IT’S FRIDAY. WELCOME TO PRESCRIPTION PULSE. We note the FDA’s affinity for “kids†(goats) and its support efforts to crush the advancement of invasive plants at its headquarters in White Oak, Md. Send news and tips to Lauren Gardner ([email protected] or @Gardner_LM), David Lim ([email protected] or @davidalim) and Katherine Ellen Foley ([email protected] or @katherineefoley). TODAY ON OUR PULSE CHECK PODCAST, host Carmen Paun talks with POLITICO White House correspondent Adam Cancryn about his exclusive reporting on the White House’s plan to unveil the first 10 drugs selected for Medicare price negotiations next week and the subsequent legal and political fights over health care costs that can be expected.
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