Monday, the U.S. Department of Health and Human Services (HHS) announced that Medicare enrollees will benefit from reduced prices on 54 drugs through Medicare Part B, effective from October 1, 2024, to December 31, 2024.

The program aims to counter drug price hikes that exceed inflation, providing financial relief for over 822,000 Medicare beneficiaries who rely on these medications to treat conditions like cancer, osteoporosis, and pneumonia.

Also Read: Doctors Struggle to Secure Medicare Coverage for Heart Patients on Novo Nordisk's Wegovy

HHS Secretary Xavier Becerra emphasized that the Biden administration's prescription drug policies are making a tangible impact on seniors and people with disabilities by reducing out-of-pocket costs.

According to Chiquita Brooks-LaSure, CMS Administrator, some Medicare beneficiaries could see daily savings ranging from $1 to as much as $3,854 on drugs included in the rebate program.

For example, a cancer patient using Novartis' AGs (NYSE:NVS) Kymriah could save up to $3,000.

Brooks-LaSure also noted that the law disincentivizes drug companies from raising prices faster than inflation, which helps protect Medicare beneficiaries from sharp price increases.

The Inflation Reduction Act's initiatives extend beyond 2024. In August, the administration reached new agreements to reduce prices for ten additional high-cost drugs.

Once these prices take effect in 2026, Medicare is projected to save an estimated $6 billion, while beneficiaries could see a reduction of $1.5 billion in out-of-pocket expenses.

Starting in 2025, Medicare Part D enrollees will further benefit from a $2,000 annual cap on prescription drug costs, down from the current cap of $3,500 for those with high expenses.

UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets.

Get the latest stock analysis from Benzinga?

This article US HHS Reveal Cost Savings For 54 Prescription Drugs Including Novartis' Cancer Drug, Ozempic Could be Next originally appeared on Benzinga.com