Medicare announced Friday that it has selected 15 drugs for a second round of price negotiations, including the popular diabetes and weight loss drugs Ozempic and Wegovy, as well as blockbuster cancer drugs and other drugs.
together with top 10 drugs The Biden administration last year targeted Medicare's price negotiation program for drugs that account for a third of prescription drug spending in the government's Old Age Insurance program.
The prices agreed in the second round of negotiations are expected to come into effect in 2027.
- Ozone; Rebelsus; Vegovi
- Treji Alipta
- Standy
- pomalist
- ibrans
- auff
- Linzes
- Carl Kuns
- Osterdo; Osterdo XR
- Brio Alipta
- Trajeta
- xifaxian
- Freral
- Janumet; Janumet XR
- Otezla
According to the plan's timeline, drugmakers have until February 28 to decide whether to join negotiations or face steep taxes if they want to stay on Medicare and Medicaid.
The White House said the first round of negotiations reduced Medicare prices for some of the most commonly used drugs by about 40% to 80% below their list prices, but researchers estimate the actual savings for many drugs are much smaller. These price reductions will take effect next year.
President Biden has tout the plancreated by Inflation reduction method he signed into law In 2022, it was one of the signature achievements of his tenure.
“The Inflation Reduction Act puts the country on the path to lower drug prices. I'm proud of my administration for enforcing this law to provide lower prices for America's seniors,” he said in a statement.
The drugmaker has gone to court seeking to halt the process. Industry groups and Republicans have blasted the pricing plan as unfair and a hindrance to innovation.
Can Trump change or stop this process?
It's unclear whether President-elect Donald Trump will seek to change the drug of choice or halt negotiations once he takes office. superior campaign linehe often swore not to do Cuts to Medicare After Democrats tried to pair him with a “2025 Plan” proposal Cancel the procedure.
A spokesman for the president-elect did not respond to a request for comment.
A senior Biden administration official told reporters Thursday that the process of selecting drugs for the negotiated plan is limited by laws passed by Congress.
The law requires Medicare to essentially make a list of drugs that are eligible for the program and then select the 15 drugs from Part D that cost the most.
They acknowledged that the Centers for Medicare and Medicaid Services made “very marginal decisions” in its guidance on how and when drug negotiations occur, but that those decisions did not allow for significant changes to drug negotiations. drug was selected.
“This process, again, is clearly laid out in the regulations. Policy officials don't have the ability to say, I prefer this drug to that drug. The whole process is based on this data,” the official said.
Which drugs were selected for the first round?
The Biden administration announced 10 drugs selected for the first round of Medicare drug price negotiation plans in August 2023, and an agreement was reached in August 2024.
The negotiated price will take effect in 2026.
- Merck Sharp & Dohme’s Januvia
- Novo Nordisk’s Fiasp and NovoLog
- AstraZeneca’s Farxiga
- Enbrel by Immunex
- Boehringer Ingelheim Jardiance
- Johnson's Strala
- Janssen’s Xarelto
- Eliquis by Bristol Meyers Squibb
- Novartis’ Entresto
- Imbruvica by Pharmacyclos
CMS estimated last year that the savings they negotiated through the program would save beneficiaries about $1.5 billion and the Medicare program $6 billion.
