In brief
Medicare has selected 15 new drugs, including treatments for Type 2 diabetes, HIV, and arthritis, for its drug price negotiation program. The initiative allows the federal government to negotiate directly with manufacturers, aiming to alleviate the financial burden on seniors and taxpayers. Upcoming negotiations, governed by a 2022 law, may significantly lower prices when they take effect in 2028. AARP commended the decision, while the pharmaceutical industry criticized government price setting.
NEW YORK (AP) — The Trump administration announced on Tuesday that 15 new medications, including those for Type 2 diabetes, HIV, and arthritis, will be featured in a Medicare drug price negotiation program. This program allows the federal government to negotiate prices directly with drug manufacturers.
These selections include several high-cost medications that account for significant Medicare spending, potentially offering considerable savings for taxpayers when these agreements take effect in 2028.
Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz emphasized that it has become increasingly important for seniors and taxpayers to avoid the burden of rising prescription drug costs, stating, Under President Trump’s leadership, CMS is taking strong action to target the most expensive drugs in Medicare, negotiate fair prices, and ensure the system works for patients — not special interests.
The government was required to release the list of drugs selected by February 1, as part of a law passed in 2022 allowing Medicare to negotiate prices for the most utilized and costly prescription medications for older Americans.
This year marks the beginning of negotiations for 25 prescription drugs covered under Medicare, including the widely used medications Ozempic, Rybelsus, and Wegovy. With these new negotiations, a total of 40 drugs will have lower prices for Medicare beneficiaries.
Newly selected drugs for negotiation include Trulicity for Type 2 diabetes, the HIV treatment Biktarvy, and Botox, often used for chronic migraines and overactive bladders. Other medications span treatments for psoriasis, ulcerative colitis, chronic lung disease, depression, and various cancers.
Approximately 1.8 million enrollees in Medicare Part B and D utilized the selected drugs last year, according to the federal agency. These medications represent about 6% of overall spending in those programs.
In a statement, AARP CEO Dr. Myechia Minter-Jordan called the announcement a “significant step forward,” noting the consistent demand among older Americans across political views for lowered drug prices.
However, the pharmaceutical trade group PhRMA expressed criticism over the law implementing the drug negotiation program, arguing that policymakers should focus on regulating insurers and pharmacy benefit managers instead.
CMS had previously announced negotiated prices for 15 drugs starting in 2027, with reduced costs for ten medications negotiated by the Biden Administration taking effect at the beginning of 2024.
The complete list of drugs up for negotiation this year includes: Anoro Ellipta, Biktarvy, Botox and Botox Cosmetic, Cimzia, Cosentyx, Entyvio, Erleada, Kisqali, Lenvima, Orencia, Rexulti, Trulicity, Verzenio, Xeljanz and Xeljanz XR, and Xolair.
