The US Medicare program is the largest health insurance program in the world, covering over 65 million people. For years, Medicare has been prohibited from negotiating drug prices with pharmaceutical companies. This has allowed drug prices in the US to skyrocket, far outpacing inflation.
In 2021, the US Congress passed the Infrastructure Investment and Jobs Act, which included a provision that would allow Medicare to negotiate drug prices for the first time. The provision is set to go into effect in 2023.