Medicare will now pay for some drugs based on global prices, not US prices

Medicare proposes a new way to pay for certain expensive drugs. It would tie US prices to what other developed countries pay, rather than letting drug companies set their own rates. This means Medicare would pay less for these drugs, and patients would pay less out-of-pocket.

For decades, drug companies have charged US patients and Medicare far more for the same drugs than they charge in other countries. This proposal directly attacks that pricing power by using international prices as a benchmark. If implemented, it could significantly reduce costs for both the government and individual patients, shifting billions in revenue from drug manufacturers.