Key Takeaways
Medicare will negotiate prices for 15 more drugs
New prices are expected to take effect in 2027
The selected drugs treat conditions like diabetes, cancer and asthma
WEDNESDAY, Jan. 22, 2025 (HealthDay News) -- Medicare will soon negotiate prices for 15 more drugs as part of an effort to reduce costs for seniors and people with disabilities, federal health officials announced in a news release.
The negotiations, made possible by the Inflation Reduction Act, will cover widely used medications for conditions such as Type 2 diabetes, cancer and asthma.
The new prices are expected to take effect in 2027.
Between November 2023 and October 2024, these selected drugs accounted for about $41 billion in total covered prescription drug costs under Medicare Part D, or about 14%, according to the U.S. Department of Health and Human Services (HHS).
"Today's announcement is pivotal -- the Inflation Reduction Act is lowering prices for people on Medicare. HHS will continue negotiating in the best interest of people with Medicare to have access to innovative, life-saving treatments at lower costs," Xavier Becerra, HHS secretary under the Biden administration, said in the release.
Drugs selected for this second round of negotiations include:
Ozempic; Rybelsus; Wegovy
Trelegy Ellipta
Xtandi
Pomalyst
Ibrance
Ofev
Linzess
Calquence
Austedo; Austedo XR
Breo Ellipta
Tradjenta
Xifaxan
Vraylar
Janumet; Janumet XR
Otezla
The new talks folllow last year's negotiations for 10 high-cost drugs, which resulted in price cuts of 38% to 79%. Those discounts, effective in 2026, are projected to save Medicare $6 billion annually.
Officials plan to expand negotiations to include 15 more drugs in the next cycle and up to 20 more in following years.
"Improving prescription drug affordability for Medicare enrollees is the core of the Inflation Reduction Act, and the next cycle of negotiations will continue to strengthen Medicare for generations to come," Chiquita Brooks-LaSure, administrator of the Centers for Medicare & Medicaid Services, said in the news release.
More information
Medicare.gov has more information on seniors' Medicare coverage options.
SOURCE: Centers for Medicare & Medicaid Services, news release, Jan. 17, 2025
What This Means For You
Medicare price negotiations aim to lower drug costs for millions of seniors, improving access to certain treatments.