The Biden administration has revealed the next 15 prescription drugs that will undergo price negotiations between manufacturers and Medicare, marking the beginning of the second phase of an initiative aimed at making expensive medications more affordable for seniors. Novo Nordisk’s popular diabetes injection Ozempic, weight loss shot Wegovy, and diabetes pill Rybelsus are among the top drugs on the list. These treatments, all containing the active ingredient semaglutide, have driven the growth of the obesity drug market but have been challenging for patients to access due to cost and other constraints.
The agreed-upon prices for these drugs are set to take effect in 2027. However, there is uncertainty about potential changes to the law’s provisions when the new administration takes office. The Inflation Reduction Act signed by President Joe Biden empowers Medicare to negotiate drug prices directly with manufacturers for the first time in the program’s history, a move supported by some Democrats and consumer advocates.
Medicare has already completed negotiations for the first 10 drugs selected in the program, with the new prices expected to save enrollees around $1.5 billion in out-of-pocket costs in 2026. The Centers for Medicare & Medicaid Services Administrator emphasized that any revisions to the negotiation process would require congressional action. The list of drugs subject to negotiations includes treatments for various conditions such as asthma, cancer, and Type 2 diabetes.
The pharmaceutical industry has raised legal challenges against the negotiation program, viewing it as a threat to revenue growth and innovation. Despite opposition from industry groups like PhRMA and Novo Nordisk, the Biden administration is moving forward with the initiative. The program aims to expand negotiations to cover more drugs in the coming years, with the goal of reducing costs for Medicare beneficiaries and the program overall.
