US releases preliminary list of $2 generic drugs for Medicare recipients

The US Centers for Medicare & Medicaid Services released on Wednesday a preliminary list of 101 generic drugs that would be available for no more than $2 for a month's supply to those enrolled in the government's Medicare programme.

The initial list includes common prescriptions such as penicillin, metformin, lithium and albuterol asthma inhalers, as well as drugs for high cholesterol, high blood pressure and other chronic conditions.

"CMS intends to include many drugs that are used to treat common conditions for people with Medicare, with periodic updates to the drug list once it is finalised," Liz Fowler, CMS deputy administrator and director of the Innovation Center, said in a statement.

The agency, which is seeking feedback following the pilot launch, said the programme could start as early as January 2027.

The scheme aims to test whether a simplified approach to offering low-cost generic drugs can improve medication adherence, CMS said.

Generic drugs on the sample list will not be subject to requirements such as prior authorisation or quantity limits.

Axios first reported about the release of the sample list earlier on Wednesday.

The Medicare health programme, a federal government health insurance programme for millions of Americans aged 65 and older and the disabled, spends billions of dollars annually on drugs for more than 67 million people enrolled.

It recently unveiled new maximum prices for the first 10 high-cost prescription medicines negotiated under the Biden Administration's Inflation Reduction Act.