Medicare spends the most on these 10 prescription drugs – how it affects you

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In a recent blog post, AARP researchers say the prices of 75 of the 100 brand name drugs that Medicare spends the most money on were raised in January. In what might seem like unsurprising economic news, none of the major brand name drugs saw list price cuts.
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Of these 75 top-selling brand name drugs, the average list price increase was 5.2%. Prices increased between 2.0% and 7.9% for these drugs, and more than half of these prices increased by 5.0% or more. Those same 75 drugs accounted for $93.2 billion in total Medicare Part D spending in 2020. That’s nearly half of the $198.7 billion Medicare Part D spent on all prescription drugs in the same year.
According to Leigh Purvis, director of health care costs and access at the AARP Public Policy Institute, the impact of the aforementioned price increases will be significant on Medicare Part D. The costs to the program itself and its beneficiaries , who take an average of four to five prescriptions a month and have a median annual income of just under $30,000, will need to increase.
Rising drug prices will affect all Americans in terms of higher cost-sharing premiums for those with health insurance – and higher taxes for all due to increased government spending. Pricing seniors based on what they can afford for medications and premiums may force more and more people to stop taking their necessary medications altogether.
AARP’s Fair Rx Prices Now campaign is pushing for legislation that would give Medicare greater price bargaining power over pharmaceutical companies, levy a tax penalty on drugmakers who raise prices at a rate above headline inflation — a scenario that happened every year between 2006 and 2020, according to AARP — and capping Part D disbursements. ‘AARP, it is hoped that all Americans will benefit from some form of price stabilization and greater financial assistance.
Based on data from AARP, the following list details the drug brands Medicare spent the most money on in 2020 – with information on their uses, Medicare spending included in 2020, number of beneficiaries using the said drug and the relative increase in the price of the drug in January. 2022.
1. Equip
Utilize: A blood thinner for people with atrial fibrillation (A-fib). Health insurance expenditure in 2020: $9.9 billion. Number of beneficiaries: 2,641,941. January 2022 price increase: 6%.
2. Revlimid
Utilize: To treat cancer. Health insurance expenditure in 2020: $5.4 billion. Number of beneficiaries: 43,747. January 2022 price increase: 4.5%.
3. Xarelto
Utilize: A blood thinner for people with atrial fibrillation (A-fib). Health insurance expenditure in 2020: $4.7 billion. Number of beneficiaries: 1,184,718. January 2022 price increase: 4.9%.
4. Januvia
Utilize: To treat diabetes. Health insurance expenditure in 2020: $3.9 billion. Number of beneficiaries: 934,686. January 2022 price increase: 5%.
5. Truth
Utilize: To treat diabetes. Health insurance expenditure in 2020: $3.3 billion. Number of beneficiaries: 497,327. January 2022 price increase: 5%.
6. Imbruvic
Utilize: To treat cancer. Health insurance expenditure in 2020: $3 billion. Number of beneficiaries: 26,847. January 2022 price increase: 7.4%.
7. Gardening
Utilize: To treat diabetes. Health insurance expenditure in 2020: $2.4 billion. Number of beneficiaries: 594,859. January 2022 price increase: 4%.
8. Humira Pen (Cf)
Utilize: To treat rheumatoid arthritis, plaque psoriasis. Health insurance expenditure in 2020: $2.2 billion. Number of beneficiaries: 42,406. January 2022 price increase: 7.4%.
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9. Ibrance
Utilize: To treat cancer. Health insurance expenditure in 2020: $2.1 billion. Number of beneficiaries: 21,394. January 2022 price increase: 6.9%.
10. Symbicort
Utilize: To treat asthma. Health insurance expenditure in 2020: $2 billion. Number of beneficiaries: 1,017,530. January 2022 price increase: 2%.
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