Medicare has selected 15 more drugs to negotiate directly with participating drug companies. Building on the the first round of negotiations, the total is now 25 drugs subject to negotiation.
"Today, the U.S. Department of Health and Human Services (HHS), through the Centers for Medicare & Medicaid Services (CMS), announced the selection of 15 additional drugs covered under Medicare Part D for price negotiations. In accordance with the Inflation Reduction Act, the negotiations with participating drug companies for these 15 drugs will occur in 2025 and any negotiated prices will become effective in 2027. Between November 2023 and October 2024, about 5.3 million people with Medicare Part D coverage used these drugs to treat a variety of conditions, such as cancer, type 2 diabetes, and asthma. These selected drugs accounted for about $41 billion in total gross covered prescription drug costs under Medicare Part D, or about 14%, during that time period. When combined with the total gross covered prescription drug costs under Medicare Part D of the 10 drugs selected for the first cycle of negotiations over that same time period, this represents over a third of total gross covered prescription drug costs under Medicare Part D." Source HHS
The Next 15 (Prices Effective 2027)
- Ozempic; Rybelsus; Wegovy
- Trelegy Ellipta
- Xtandi
- Pomalyst
- Ibrance
- Ofev
- Linzess
- Calquence
- Austedo; Austedo XR
- Breo Ellipta
- Tradjenta
- Xifaxan
- Vraylar
- Janumet; Janumet XR
- Otezla
The First 10 (Prices Effective 2026)
- Januvia
- Fiasp; Fiasp FlexTouch; Fiasp PenFill; NovoLog; NovoLog FlexPen; NovoLog PenFill
- Farxiga
- Enbrel
- Jardiance
- Stelara
- Xarelto
- Eliquis
- Entresto
- Imbruvica
"In accordance with the final guidance for the second cycle of the Drug Price Negotiation Program, drug companies with a selected drug will have until February 28, 2025 to decide if they will participate in negotiations. In negotiating with participating manufacturers, CMS will consider the selected drug’s clinical benefit, the extent to which it addresses unmet medical needs, and its impact on specific populations, including people who rely on Medicare, among other considerations, such as costs associated with research and development as well as production and distribution for selected drugs." Source HHS
"In future years, CMS will select for negotiation up to an additional 15 drugs for the third cycle of negotiation (including drugs covered under Part B and Part D), and up to 20 more drugs for each cycle after that, as outlined in the Inflation Reduction Act." Source HHS
The Biotechnology Innovation Organization released the following statement:
BIO Statement on New List of Medicines Targeted for Government Price Setting (January 17, 2025)
“In the final hours of this administration, President Biden is doubling down on a flawed drug pricing scheme that is jeopardizing seniors’ access to important medicines and undermining the development of new cures and treatments.
“Patients with cancer, mental health illnesses, rare diseases and other conditions are experiencing longer, healthier lives because of the work of innovator companies. And yet this law is upending an innovation ecosystem that countless people rely on. Allowing the government to politicize the research and development of new medicines takes away hope from patients and their loved ones. At the same time, it doesn’t address the real reasons why some patients can’t afford their medicines when they go to the pharmacy.
“Patients and biotech researchers are looking to this new Congress and administration to fix the flaws in this law and to rein in practices by insurers and drug middlemen that make medicines less accessible and affordable for patients. We stand ready to help lawmakers deliver these solutions for the American people.”