AARP study reveals nearly a doubling of prices for the top 25 Medicare Part D drugs.

• Medicare Part D's top drug prices have grown more than inflation, according to a new AARP report.
• Since their introduction, the 25 drugs have experienced an average increase of 98%, which is almost double, in their market value.
• AARP emphasizes the significance of Medicare's ability to negotiate drug prices based on research findings.

According to a new AARP report, the average price of the top 25 prescription drugs covered by Medicare Part D has nearly doubled since they were first introduced.

The rate of price growth among Americans aged 50 and over has frequently surpassed the rate of inflation, as stated by the interest group representing this age group.

Medicare can now negotiate prescription drug costs due to the Inflation Reduction Act, which was signed into law by President Joe Biden in 2022.

Notably, only certain drugs are eligible for those price negotiations.

Medicare may save an estimated $6 billion in net savings by including the first 10 drugs on the Biden administration's list released in August.

The Centers for Medicare and Medicaid Services will announce a list of 15 Part D drugs for negotiation in 2027 by Feb. 1.

According to Leigh Purvis, prescription drug policy principal at AARP, there is a "pretty strong likelihood" that at least some of the top 25 Part D drugs not currently subject to Medicare price negotiation may be included in the second line of negotiation.

The study revealed that the 25 drugs have experienced an average increase of 98% or almost doubled since their introduction, with lifetime price increases ranging from 0% to 293%.

AARP found that the substantial portion of the current list prices was due to the price increases that occurred after the drugs were introduced to the market.

On average, the top 25 treatments have been available for 11 years, with timelines ranging from five to 28 years.

Medicare should be allowed to negotiate drug prices and there should be a mechanism to discourage annual price increases, according to Purvis. The Inflation Reduction Act will penalize drug companies for price increases that exceed inflation.

This year, a new $2,000 annual cap on out-of-pocket Part D prescription drug costs goes into effect, giving beneficiaries the option to spread out those costs over the course of the year instead of paying all at once. Additionally, insulin has been capped at $35 per month for Medicare beneficiaries.

In 2025, retirees will see changes in Social Security and Medicare. Biden withdrew student loan forgiveness plans, but there is still debt relief available.

According to Purvis, those caps assist individuals who were previously spending more than $10,000 annually on their Part D prescription drug cost sharing.

""The out-of-pocket cap is crucial for everyone, including those who need it, as it's just one expensive prescription away," Purvis stated."

The new law extends an additional assistance program for Part D beneficiaries with low incomes.

According to Natalie Kean, director of federal health advocacy at Justice in Aging, individuals often face the dilemma of deciding whether to stretch their pills by splitting them or to forgo groceries in order to fill a prescription.

Kean stated that the pressure of costs and prescription drugs is genuine, and it is particularly challenging for individuals with low incomes who are simply trying to fulfill their daily requirements.

When filling prescriptions, retirees should notice tangible differences as new changes take effect, she said.