Medicare Negotiation Outcomes Calculator

This video introduces the Medicare Negotiation Outcomes Calculator—an interactive tool from West Health and Verdant Research that helps users understand how Medicare’s Drug Price Negotiation Program (MDPNP) works and how changing it would impact the program. The IRA, passed in 2022, granted Medicare the power for the first time to directly negotiate prices on high-cost drugs that have been on the market for many years without generic or biosimilar competition—an historic shift aimed at lowering costs for both older adults and taxpayers. Built on a detailed model of these provisions, the calculator estimates how policy changes could affect federal savings and the number and types of drugs selected for negotiation between 2026 and 2030. Users can change the law's parameters, such as the number of drugs negotiated and how long they've been on the market. This tool allows them to compare those changes to current law to understand tradeoffs between savings and other policy outcomes of interest.

Click on the button below to try the tool yourself.