Ozempic, cancer treatments among 15 drugs to be negotiated by Medicare for lower prices

Prescription drugs are displayed at NYC Discount Pharmacy in Manhattan on July 23, 2024 in New York City. (Photo by Spencer Platt/Getty Images) (Getty Images)

The Biden Administration announced that it selected 15 drugs for Medicare drug price negotiation, including those treating diabetes, cancer and asthma.

The move is meant to lower prices for consumers after a 2022 law that lifted a nearly 20-year ban that prevented Medicare from being able to negotiate lower drug prices for seniors. 

Medicare negotiating prices of 15 prescription drugs 

By the numbers:

The 15 drugs selected for negotiation by Medicare include the following: 

  • Ozempic; Rybelsus; Wegovy – Drugs that are used to treat type 2 diabetes, obesity and cardiovascular diseasae.
  • Trelegy Ellipta – An inhaler that is used to treat chronic obstructive pulmonary disease (COPD) and asthma in adults. It is a combination of fluticasone furoate, umeclidinium, and vilanterol.
  • Xtandi – A prescription medication that treats prostate cancer in men by reducing the number of times androgens, like testosterone, bind to androgen receptors.
  • Pomalyst – A drug that treats Kaposi sarcoma and multiple myeloma and AIDS-related Kaposi sarcoma.
  • Ibrance – A medication that treats breast cancer that has spread to other parts of the body or is locally advanced.
  • Ofev – A medication that treats chronic lung disease in adults.
  • Linzess – A drug that treats irritable bowel syndrome and chronic idiopathic constipation.
  • Calquence – A medication that treats lymphocytic leukemia or small lymphocytic lymphoma.
  • Austedo; Austedo XR – A medication that treats chorea in Huntington’s disease and tardive dyskinesia.
  • Breo Ellipta – A prescription medicine that is used to prevent and control symptoms of asthma and COPD.
  • Tradjenta -- A prescription medicine that is used to treat type 2 diabetes.
  • Xifaxan – A medication that treats Hepatic encephalopathy, irritable bowel syndrome and diarrhea.
  • Vraylar – A drug that treats bipolar disorder and can be used to treat major depressive disorder.
  • Janumet; Janumet XR – A medication used to treat type 2 diabetes by lowering blood sugar in adults.
  • Otezla – A prescription pill that treats plaque psoriasis, psoriatic arthritis and oral ulcers by reducing inflammation in the body.

A news release from the Centers for Medicare and Medicaid Services (CMS) states that drug companies with a selected drug will have until Feb. 28 to decide if they will participate in negotiations. 

CMS adds it will consider the selected drug's clinical benefit and the impact on specific populations during negotiations. 

Any negotiated prices are set to go into effect in 2027. 

What they're saying:

President Biden announced that "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 my Inflation Reduction Act is delivering will put money back in seniors' pockets across the country."

U.S. Sen. Amy Klobuchar shared the following statement: "For too long, big drug companies have put their profits ahead of the well-being of Americans who need life-sustaining medications. That is why I worked for years to end the big drug companies’ sweetheart deal that artificially raised prices at the expense of our seniors. Today, we take another historic step toward lowering the price of some of the most widely-used, costly medications with the announcement of even more drugs that will be subject to Medicare negotiations. The incoming administration must continue these efforts and fully implement this law so millions of Americans can benefit from these life-changing savings."  

Health and Human Services Secretary Xavier Bederra said ""Last year we proved that negotiating for lower drug prices works. Now we plan to build on that record by negotiating for lower prices for 15 additional important drugs for seniors." 

Past drug price negotiations

The backstory:

The Department of Health and Human Services announced the lower prices for 10 drugs that are subject to negotiation in Aug. 2023. 

Consumers can expect to pay lower prices for those drugs on Jan. 1, 2026. 

Those drugs are Eliquis, Xarelto, Januvia Jardiance, Stelara, Imbruvica, Farxiga, Entresto, Enbrel, NovoLog and Fiasp insulins.

Senator Klobuchar said Medicare beneficiaries will save between 38% and 79% off the list prices of the first ten drugs starting next year (2026), adding that the lower prices will save 9 million Americans $1.5 billion in out-of-pocket drug costs in 2026 alone.

The Source: News releases from the Biden Administration, U.S. Senator Amy Klobuchar and reports from the Associated Press. 

HealthJoe BidenAmy Klobuchar