Drugs that treat Type 2 diabetes, HIV and arthritis are among 15 new medications chosen for a Medicare drug price negotiation program that allows the federal government to haggle directly with drug manufacturers, the Trump administration said Tuesday.
The drugs selected include some of the medications on which Medicare spends the most money. That means the deals negotiated this year have the potential to deliver significant savings to taxpayers when they go into effect in 2028.
“For too long, seniors and taxpayers have paid the price for skyrocketing prescription drug costs,” Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz said in a statement Tuesday. “Under President Trump’s leadership, CMS is taking strong action to target the most expensive drugs in Medicare, negotiate fair prices, and make sure the system works for patients — not special interests.”
The federal government had until Feb. 1 to announce its list of 15 drugs. The negotiations take place under a 2022 law that allows Medicare to haggle over the price it pays on the most popular and expensive prescription drugs used by older Americans.
The government already has negotiated prices for 25 prescription drugs covered by Medicare, including the massively popular GLP-1 weight-loss and diabetes drugs Ozempic, Rybelsus and Wegovy. This year’s negotiations mark the third round of the program and would mean a total of 40 drugs with lower prices for Medicare enrollees.
This year also marks the first time drugs payable under Medicare Part B are eligible for inclusion in the program. Medicare Part B drugs are outpatient prescriptions, such as medications infused or injected at a doctor’s office. Retail prescription drugs covered under Medicare Part D are also eligible, as they were in past years.
The newly announced drugs up for negotiation include the popular Type 2 diabetes drug Trulicity and an HIV medication called Biktarvy. The neurotoxin Botox, frequently used to reduce the appearance of wrinkles, will also have its price negotiated, but only for Medicare-covered uses, such as treating migraines or overactive bladders.
Among the other drugs selected are treatments for psoriasis, ulcerative colitis, chronic lung disease, depression and various cancers.
Over the past year, some 1.8 million Medicare Part B or Part D enrollees used the 15 drugs, according to the Trump administration. They accounted for about 6% in total Part B and Part D spending, CMS said.
CMS also stated that one Type 2 diabetes drug, whose price was previously negotiated under the program, Tradjenta, will undergo renegotiation.
AARP CEO Dr. Myechia Minter-Jordan called Tuesday’s announcement a “significant step forward.”
“Older Americans across the political spectrum consistently say that lowering drug prices is a top priority, and we thank the Administration for protecting Medicare’s ability to meet that need,” she said in a statement.
The leading trade association for pharmaceutical companies, meanwhile, criticized the law that put the program into effect, the Inflation Reduction Act, and argued policymakers wanting to lower costs should instead rein in insurers and third-party pharmacy benefit managers.
“The IRA continues to show why government price setting is the wrong approach for Americans,” PhRMA Executive Vice President of Policy and Research Elizabeth Carpenter said in a statement.
CMS in November announced negotiated drug prices for 15 drugs that would go into effect in 2027. Reduced prices for the first 10 drugs negotiated by the Biden administration in 2024 went into effect at the start of this year.
The full list of new medications that will be negotiated this year under the program includes: Anoro Ellipta, Biktarvy, Botox and Botox Cosmetic, Cimzia, Cosentyx, Entyvio, Erleada, Kisqali, Lenvima, Orencia, Rexulti, Trulicity, Verzenio, Xeljanz and Xeljanz XR and Xolair.
