Leqembi, a newly-approved drug for Alzheimer’s disease, could cost Medicare up to $17.8 billion annually, according to an analysis by KFF. The drug’s estimated uptake rate of 100,000 prescriptions by year three may be conservative, potentially leading to higher expenses. With each patient’s annual cost at $26,500, the financial burden on Medicare is projected to increase significantly if the drug is prescribed to a larger population.
According to an analysis conducted by KFF, the newly-approved drug Leqembi, which has the potential to slow the progression of Alzheimer’s disease, is expected to impose significant costs on Medicare each year.
The analysis, published on July 6, assessed the potential financial impact of the drug on the program based on its projected uptake rate. Following the drug’s approval by the FDA on the same day, Medicare will cover Leqembi for eligible patients, subject to certain conditions that require prescribing providers to participate in a registry to track the drug’s effectiveness.
Eisai and Biogen, the manufacturers of Leqembi, have estimated that approximately 100,000 individuals will be prescribed the drug within three years of its approval. Based on this estimated uptake rate, KFF determined that Medicare could face annual costs of $2.7 billion.
However, KFF’s analysis suggests that Eisai’s estimate of 100,000 prescriptions may be conservative. If the number of users reaches 335,000, Medicare’s expenses would amount to $8.9 billion annually. Furthermore, if the drug is prescribed to 670,000 people, it would cost Medicare a staggering $17.8 billion.
It is important to note that Leqembi carries a price tag of $26,500 per patient per year.