Medicare has successfully negotiated drug prices with pharmaceutical manufacturers for 10 higher-priced medications. These new prices will take effect in 2026. The drugs include Janssen Biotech's Stelara, Janssen Pharm's Xarelto, Bristol Myers Squibb's (BMY) Eliquis, Novartis' (NVS) Entresto, Pharmacyclics' Imbruvica, Merck's (MRK) Januvia, Novo Nordisk's (NVO) Fiasp, AstraZeneca's (AZN) Farxiga, Immunex's Enbrel, and Boehringer Ingelheim's Jardiance.

Dr. Meena Seshamani, Center for Medicare and Medicaid Services Deputy Administrator and Director of the Center for Medicare, joins Yahoo Finance health reporter Anjalee Khemlani to discuss this landmark outcome.

Seshamani emphasizes the "good faith negotiations" that took place, considering clinical benefits and input from clinical pharmacists to drug pricing experts, all aimed at establishing fair drug pricing for all parties involved. She estimates that the new prices will save the Medicare program $6 billion, with a $1.5 billion in savings for Medicare beneficiaries who pay for prescription drugs.

"Transparency is very important and I think that has been the main goal of standing up this program," Seshamani told Yahoo Finance. She highlights the inclusive approach, involving patients, healthcare providers, drug plans, and companies, offering "multiple opportunities" for stakeholders to comment on CMS's guidance and negotiate "access and affordability for the kind of innovative cures and therapies that people need."

Seshamani concludes, "I think what you see today with the result of the negotiation program really demonstrates the thoughtful, pragmatic nature that this program has been stood up and that will continue in the future."

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This post was written by Angel Smith