The Biden administration has added 15 more drugs to Medicare's list of medications subject to price negotiations, bringing the total to 25. The new additions include popular drugs like Ozempic and Wegovy, with the negotiations expected to generate billions of dollars in savings for taxpayers. The price negotiations will be handled by the incoming Trump administration.
The Biden administration announced Friday that 15 more drugs have been added to Medicare’s list of medications that will be negotiated directly between the government and drug manufacturers. The price negotiations for these additional drugs will be handled by the incoming Trump administration and are expected to result in billions of dollars in savings for taxpayers.
This list represents a significant step in the process of negotiations, with the final details and pricing to be determined by President-elect Donald Trump’s administration. U.S. Health and Human Services Secretary Xavier Becerra emphasized the importance of these negotiations, stating that, “For some people this is a big deal,” as many struggle to afford their medications and may have to skip doses to make their prescriptions last longer. The total number of drugs subject to price negotiation has now reached 25, accounting for a third of Medicare’s overall spending on prescription drugs. The savings will stem from a new law that allows Medicare to negotiate directly with pharmaceutical companies on the price it pays for the most popular and expensive prescription drugs used by older Americans. For years, Medicare had been legally prohibited from such negotiations. The law, passed by Democrats and signed by President Joe Biden, faced opposition from Republicans at the time, but their stance on the law now remains unclear.While pharmaceutical companies have challenged the negotiations through lawsuits, they have also participated in the discussions with the federal government. During earnings calls last year, pharmaceutical executives expressed confidence that the new Medicare drug prices would not significantly impact their profits. In the initial round of negotiations, list prices were reduced by hundreds, and in some cases thousands, of dollars for a 30-day supply of popular drugs used by millions of Medicare beneficiaries. These included well-known blood thinners like Xarelto and Eliquis, and diabetes medications such as Jardiance and Januvia. The savings generated from the new list prices for these drugs are projected to amount to approximately $6 billion for taxpayers and $1.5 billion for Medicare enrollees. The negotiated prices for these drugs will not take effect until 2026. However, some Medicare enrollees are expected to see relief from drug prices sooner through a new rule implemented this year that caps annual out-of-pocket costs on prescription drugs at $2,000.The Centers for Medicare and Medicaid Services has identified the 15 newly added drugs as Ozempic, Rybelsus, and Wegovy; Trelegy Ellipta; Xtandi; Pomalyst; Ibrance; Ofev; Linzess; Calquence; Austedo and Austedo XR; Breo Ellipta; Tradjenta; Xifaxan; Vraylar; Janumet and Janumet XR; and Otezla. Ozempic and Wegovy are manufactured by Novo Nordisk, a Danish company with its U.S. headquarters located in Plainsboro, New Jersey
MEDICARE DRUG PRICES BIDEN ADMINISTRATION TRUMP ADMINISTRATION OZEMPIC WECOVY PHARMACEUTICAL COMPANIES HEALTHCARE SAVINGS
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