New Drugs Selected for Medicare’s Price Negotiations

The Biden administration has added Ozempic and Wegovy, popular weight loss and diabetes drugs, to Medicare’s list of medications that will be negotiated directly with drug manufacturers, resulting in significant savings for taxpayers.

Other Selected Drugs

Some of the other medications selected include:

• Trelegy Ellipta, which treats asthma
• Otezla, a psoriatic arthritis drug
• Several drugs that treat different forms of cancer

Total Number of Drugs

The list is a first step in negotiations and, given the timing, the details and final pricing will be left to President-elect Donald Trump’s administration.

Impact on Medicare Enrollees

Medicare enrollees will see a significant reduction in the cost of these drugs, with the total savings expected to be around $6 billion for taxpayers and $1.5 billion for Medicare enrollees.

Background

The new law allows Medicare to negotiate the price of the most expensive and popular prescription drugs, which account for a third of Medicare spending on prescriptions. The law was passed by Democrats and signed into law by President Joe Biden, but was opposed by Republicans at the time.

Drug Companies’ Reaction

Drug companies, including Novo Nordisk, have sued over the negotiations and remain opposed to the program. They have called on the incoming administration and Congress to “fix” the law.

AARP’s Position

The AARP, one of the most powerful health care interest groups in Washington, has stated that it will fight any efforts to weaken the law in the GOP-controlled Congress.

Timeline

The negotiated prices for the first 10 drugs don’t kick in until 2026, while prices for the 15 additional drugs announced today won’t go into effect until 2027. However, some Medicare enrollees should see relief from drug prices in a new rule this year that caps annual out-of-pocket costs on prescription drugs at $2,000.

Conclusion

The selection of new drugs for Medicare’s price negotiations is a significant step towards reducing the cost of prescription medications for millions of Americans. As the program continues to evolve, it is essential to monitor the impact of these negotiations on patient access to life-saving treatments and to advocate for further reforms to ensure that the system is fair and equitable for all.

Frequently Asked Questions

• Q: What drugs have been selected for Medicare’s price negotiations?
• A: Ozempic, Wegovy, Trelegy Ellipta, Otezla, and several drugs that treat different forms of cancer.
• Q: What is the expected impact on Medicare enrollees?
• A: The total savings expected to be around $6 billion for taxpayers and $1.5 billion for Medicare enrollees.
• Q: What is the timeline for the negotiated prices to take effect?
• A: The negotiated prices for the first 10 drugs don’t kick in until 2026, while prices for the 15 additional drugs announced today won’t go into effect until 2027.