Biden Administration Unveils 15 More Prescription Drugs for Price Negotiations with Medicare
The Biden administration has unveiled the next 15 prescription drugs that will be subject to price negotiations between manufacturers and Medicare, kicking off the second phase of a landmark process aimed at making costly medications more affordable for seniors. The list includes Novo Nordisk’s blockbuster diabetes injection Ozempic, weight loss shot Wegovy, and diabetes pill Rybelsus, which are considered one product in the talks since they share the same active ingredient, semaglutide.
The agreed-upon prices for the second wave of drugs are scheduled to go into effect in 2027, but it is unclear whether President-elect Donald Trump will try to change or scale back some of the law’s provisions when he takes office next week.
The 15 drugs selected for negotiation include:
- Ozempic, Wegovy, and Rybelsus (semaglutide) by Novo Nordisk, used for Type 2 diabetes, weight management, and cardiovascular health
- Trelegy Ellipta by GSK, used for chronic obstructive pulmonary disease and asthma
- Xtandi by Pfizer and Astellas Pharma, used to treat prostate cancer in men
- Pomalyst by Bristol Myers Squibb, used to treat a blood cancer called multiple myeloma and a cancer that develops in people with HIV
- Ibrance by Pfizer, used to treat certain breast cancers
- Ofev by Boehringer Ingelheim, used to treat chronic lung diseases in adults
- Linzess by AbbVie and Ironwood Pharmaceuticals, used to treat irritable bowel syndrome and chronic constipation
- Calquence by AstraZeneca, used to treat certain types of blood cancer
- Austedo, Austedo XR by Teva Pharmaceuticals, used to treat involuntary movements caused by tardive dyskinesia or Huntington’s disease
- Breo Ellipta by GSK and Theravance, used to treat chronic obstructive pulmonary disease
- Tradjenta by Boehringer Ingelheim and Eli Lilly, used for Type 2 diabetes management
- Xifaxan by Salix Pharmaceuticals, used to treat diarrhea caused by traveling or irritable bowel syndrome
- Vraylar by AbbVie, used to treat schizophrenia, bipolar I disorder, and major depressive disorder
- Janumet, Janumet XR by Merck, used to manage Type 2 diabetes
- Otezla by Amgen, used to treat plaque psoriasis, psoriatic arthritis, and oral ulcers
The negotiation process, which is based on the Inflation Reduction Act, aims to reduce the cost of prescription drugs for seniors. The administration has already completed negotiations for the first 10 drugs selected in the program, with new prices set to go into effect next year.
According to the Centers for Medicare & Medicaid Services, the 15 drugs selected for the second round of negotiations account for approximately 14% of total Part D prescription drug costs, and the combined list represents approximately 36% of all Medicare Part D prescription drug costs during the time period from November 1, 2023, to October 31, 2024.
Industry groups, such as PhRMA, oppose the price negotiations, viewing them as a threat to their revenue growth, profits, and drug innovation. However, patient advocacy groups, such as AARP, have applauded the development, calling it a step toward reducing the cost of prescription drugs for seniors.