AARP report shows U.S. brand-name drug prices rose 81% while falling abroad
Regulation
AARP issued an urgent call on Medicare drug costs, publishing a new report showing U.S. prices for 25 top-selling brand-name drugs climbed 81% on average after launch while falling 13% across 19 comparable countries. The drugs account for more than $100 billion in annual Medicare spending and affect nearly 15 million beneficiaries. The report found Medicare could save nearly $200 billion over five years on its ten highest-cost drugs by matching lowest international prices. Separately, the Centers for Medicare and Medicaid Services will end the Part D Premium Stabilization Demonstration after 2026, removing a $9.8 billion subsidy and pushing the 2027 national average monthly bid to $296.05, a 24% increase. Standalone drug plan enrollees currently pay about $36 per month and could lose roughly $16 in monthly subsidies, while Medicare Advantage plans with drug coverage average about $8 per month.
