In brief
In a bold move to combat high prescription drug costs, the Trump administration has selected 15 new medications for Medicare's price negotiation program. This initiative targets high-cost drugs, including treatments for Type 2 diabetes, HIV, and arthritis, aiming for significant savings for both the government and Medicare beneficiaries in 2028. Medicare's negotiation efforts have already produced savings for 25 drugs, with this batch marking the third round of negotiations under the Inflation Reduction Act.
NEW YORK (AP) — The Trump administration has unveiled a selection of 15 new medications to be included in the Medicare drug price negotiation program that allows the federal government to negotiate prices directly with drug manufacturers.
Among the selected medications are some that incur the highest costs for Medicare, indicating potential for notable savings that could benefit taxpayers significantly when the agreements become effective in 2028.
“For too long, seniors and taxpayers have paid the price for skyrocketing prescription drug costs,” remarked Dr. Mehmet Oz, Administrator of the Centers for Medicare and Medicaid Services (CMS), highlighting the administration’s commitment to ensuring fair prices and a healthcare system that prioritizes patients over special interests.
The list of drugs was announced ahead of a February 1 deadline, as mandated by the Inflation Reduction Act of 2022, which allows negotiations for the most popular and costly prescription drugs frequently used by older Americans.
This year, the program has become more inclusive, allowing drugs covered under Medicare Part B, typically outpatient prescriptions administered at doctors' offices, to be negotiated alongside those under Medicare Part D.
Notable entries in this year’s lineup include Trulicity, a widely used Type 2 diabetes medication, and Biktarvy, an HIV treatment. Botox, often recognized for its cosmetic uses, will be negotiated only for Medicare-covered instances such as treating chronic migraines or overactive bladder conditions.
In total, the newly negotiated medications account for a significant portion of Medicare expenditure. Recent figures show that about 1.8 million beneficiaries utilized these drugs, constituting roughly 6% of the total spending in Medicare's Part B and Part D programs.
Dr. Myechia Minter-Jordan, AARP CEO, welcomed the announcement as a significant stride toward addressing the concerns of older Americans regarding high drug prices.
Conversely, the pharmaceutical industry's trade group, PhRMA, denounced the enforcement of price negotiations, arguing that a better approach to curbing costs would focus on limiting the influence of insurers and pharmacy benefit managers rather than government-imposed price caps.
This year's negotiations follow a groundwork established in prior discussions, with the full list of 15 new medications set to include: Anoro Ellipta, Biktarvy, Botox (and its cosmetic variant), Cimzia, Cosentyx, Entyvio, Erleada, Kisqali, Lenvima, Orencia, Rexulti, Trulicity, Verzenio, Xeljanz, and Xeljanz XR, in addition to Xolair.
