This week, there was big news for Medicare, the government's health care program for seniors

and some people with disabilities.

A big announcement today that may impact anyone who gets prescription drugs through Medicare.

President Jabbite says he's going off to pharmaceutical giants with a plan to make

them lower the price of prescription drugs.

10 medications treating illnesses like diabetes and even cancer will be subject to price

negotiations under Medicare.

The ability to bargain directly with drug companies on prices, it's something Medicare has

never been able to do before.

And now, the Biden administration has named the 10 drugs that are first in line for negotiations.

More are expected to be added over time, and the plan is supposed to save Medicare $25 billion

a year by 2031.

But drug companies don't like this new arrangement.

They say the government has them over a barrel, and they're gearing up for a long fight.

Well, I think there's billions of dollars here at stake.

There's billions of dollars of sales from drug companies.

There's billions of dollars of government dollars that the government wants to save.

And there's a whole host of money that Medicare beneficiaries could potentially save.

Welcome to the journal, our show about money, business, and power.

I'm Jessica Mendoza, it's Thursday, August 31st.

Coming up on the show, the clash between the Biden administration and Big Pharma.

Medicare started in 1965, but for decades, it didn't include a benefit for outpatient prescription drugs.

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