Even at a “reduced price” of $28,200, Medicare beneficiaries would pay $5,640 for one year’s supply of Aduhelm, a drug that treats Alzheimer’s.
President Biden, in his State of the Union speech, proposed giving Medicare the ability to negotiate lower prices for prescription drugs.
Read: You may have missed Biden’s mention of Medicare at the State of the Union, but it could be life-changing for many Since total Medicare Part B expenditures in 2020 were $419 billion, a $23 billion increase would require a 5.4% increase in Part B premiums. Those costs would rise over time as more individuals stricken with Alzheimer’s become eligible. And they could double if a competitor offers a clearly effective product at Biogen’s original price of $56,000. The growing volume of eligible patients and Biogen’s original price could require an eventual 32% increase in Part B premiums .