The Biden administration revealed the next 15 prescription drugs subject to price negotiations with Medicare, marking the second phase of an initiative to make expensive medications more affordable for seniors. Novo Nordisk’s diabetes drugs Ozempic, Wegovy, and Rybelsus are among the top-listed drugs due to their shared active ingredient, semaglutide. These treatments have been challenging for patients to access because of high costs, insurance coverage, and supply issues.
The agreed-upon prices for the second set of drugs will take effect in 2027. There is uncertainty about potential changes to the law’s provisions when President-elect Donald Trump assumes office. The Inflation Reduction Act empowered Medicare to negotiate drug prices directly for the first time in its history, aiming to alleviate the financial burden on seniors struggling to afford healthcare.
Medicare has already finalized negotiations for the initial 10 drugs, with the new prices set to be implemented next year. The Biden administration anticipates these negotiated prices will save Medicare enrollees approximately $1.5 billion in out-of-pocket costs in 2026. CMS Administrator Chiquita Brooks-LaSure emphasized the importance of following the law as written and highlighted the need for congressional action to modify the negotiation process.
The list of drugs subject to negotiations includes treatments for various conditions like asthma, cancer, and Type 2 diabetes. These drugs accounted for a significant portion of Medicare Part D prescription costs. The pharmaceutical industry has raised legal challenges against the negotiation program, expressing concerns about revenue impact and innovation.
Novo Nordisk and other drugmakers have criticized the negotiation process, with ongoing legal actions challenging its implementation. The program aims to expand coverage for essential drugs and reduce costs for Medicare beneficiaries. The administration’s efforts have received support from patient advocacy groups like AARP, emphasizing the potential savings and improved access to medications for seniors.
The negotiation process involves a series of steps and will continue until November. The government plans to expand negotiations to include more drugs in the coming years. The program’s success in reducing drug prices has been acknowledged, with plans to further enhance the negotiation process for the benefit of Medicare beneficiaries.
