CMS has named 15 additional prescription drugs, including diabetes medication Ozempic, for price negotiations under the Inflation Reduction Act. This marks the second round of negotiations aimed at reducing drug costs for Medicare beneficiaries.
The selected drugs account for approximately $41 billion in total spending under Medicare Part D between November 2023 and October 2024, or about 14% of Medicare Part D's prescription drug costs, according to a Jan. 17 news release from the agency. The negotiated prices for these drugs will take effect in 2027.
The full list of drugs selected includes Ozempic, Rybelsus, Wegovy; Trelegy Ellipta, Xtandi, Pomalyst, Ibrance, Ofev, Linzess, Calquence, Austedo, Breo Ellipta, Tradjenta, Xifaxan, Vraylar, Janumet and Otezla.
These drugs are used to treat a range of conditions, including cancer, Type 2 diabetes and asthma, and represent some of the most expensive medications covered under Medicare.
HHS Secretary Xavier Becerra reiterated the significance of the negotiations, stating, "Negotiation for lower drug prices works, and we plan to build on that record to make life-saving treatments more affordable for seniors."
In a statement, President Joe Biden also praised the announcement, saying, "These 15 drugs, together with the 10 drugs that Medicare already negotiated, represent about a third of Medicare Part D spending on prescription drugs, which means the lower prices [the] Inflation Reduction Act is delivering will put money back in seniors' pockets around the country."
The second round of negotiations builds on the success of the first cycle, which secured price reductions for 10 drugs set to take effect in 2026. If the new prices had been applied in 2023, it is estimated they would have saved Medicare beneficiaries $6 billion.