Medicare Selects New Drugs for Price Negotiations
Washington (AP) — Medicare’s list of medications that will be negotiated directly with drug manufacturers has been expanded to include popular weight loss and diabetes drugs like Ozempic and Wegovy, the Biden administration announced on Friday.
Additional 15 Drugs Selected
Besides Ozempic and Wegovy, the list now includes 13 other medications, including Trelegy Ellipta, which treats asthma; Otezla, a psoriatic arthritis drug; and several that treat different forms of cancer.
Budget Impact
The price negotiations for the additional 15 drugs will be handled by the incoming Trump administration, with the goal of achieving significant savings for taxpayers. The total list of 25 drugs selected for negotiation now accounts for a third of Medicare spending on prescriptions, according to U.S. Health and Human Services Secretary Xavier Becerra.
Savings Expected
The savings on the 25 drugs are expected to generate about $6 billion for taxpayers and $1.5 billion for Medicare enrollees. The negotiated prices for the first 10 drugs will kick in in 2026, while prices for the additional 15 drugs won’t go into effect until 2027.
Obesity Treatment
Medicare enrollees, however, still won’t be able to access the drugs for obesity treatment under a federal law that prohibits the program from paying for weight loss treatments. Right now, Medicare will only cover Ozempic and Wegovy when used to treat diabetes or lower blood sugar.
FDA Regulations
A rule proposed by the Democratic Biden administration would cover the popular anti-obesity medications for weight loss, but it remains unclear if the incoming Republican administration will implement the rule.
Industry Reaction
Drug companies have sued over the negotiations and remain opposed to the program. On Friday, the top pharmaceutical lobby called on the incoming administration and Congress to “fix” the law.
Conclusion
The selection of Ozempic, Wegovy, and 13 other medications for price negotiation is a significant step towards reducing healthcare costs for Medicare enrollees. The expected savings from the 25 drugs will be a welcome relief for many seniors who struggle with high prescription costs.
FAQs
- What is the list of medications selected for price negotiation?
- Ozempic and Wegovy
- Trelegy Ellipta, which treats asthma
- Otezla, a psoriatic arthritis drug
- Several drugs that treat different forms of cancer
- What is the expected savings from the 25 drugs?
- About $1.5 billion for Medicare enrollees
- When will the negotiated prices take effect?
- The negotiated prices for the first 10 drugs will kick in in 2026
- Prices for the additional 15 drugs won’t go into effect until 2027
