In brief
The Centers for Medicare and Medicaid Services has announced that 15 drugs, including those used to treat Type 2 diabetes, HIV, and arthritis, will undergo price negotiations starting this year. This initiative, aimed at reducing soaring prescription costs for seniors, has been a priority under the Trump administration. The new drug list includes popular medications like Trulicity and Biktarvy, with negotiations expected to translate into lower healthcare expenses for Medicare enrollees by 2028.
NEW YORK (AP) — The Centers for Medicare and Medicaid Services (CMS) has selected 15 new medications to be part of a Medicare drug price negotiation program. Among these are essential treatments for Type 2 diabetes, HIV, and arthritis. The announcement made by the Trump administration indicates that this initiative will empower the government to negotiate directly with drug manufacturers.
The selection comprises high-cost medications that Medicare frequently covers, which signifies potential significant savings for taxpayers when the negotiations finalize and take effect in 2028. Dr. Mehmet Oz, the CMS Administrator, emphasized the importance of this program, stating, “For too long, seniors and taxpayers have paid the price for skyrocketing prescription drug costs.”
The list of selected drugs, which is established under the 2022 law allowing Medicare to negotiate costs for expensive and widely used prescription medications, includes Trulicity for diabetes management and Biktarvy, an antiviral drug.
This year’s negotiations mark the third round in the program, extending the total of negotiated drugs to 40. The new regulations also allow negotiations for drugs covered under Medicare Part B, which consists of outpatient prescriptions. Notably, cosmetic uses of Botox will also be included, particularly for medical conditions like migraines or overactive bladders.
Significant drugs selected for negotiation also include those treating psoriasis, ulcerative colitis, chronic lung disease, depression, and various forms of cancer. The impact of this initiative is seen as crucial, given that approximately 1.8 million Medicare beneficiaries utilized these 15 drugs, representing about 6% of total spending under Medicare Part B and Part D.
While some organizations, like AARP, praise the efforts for tackling high drug costs, pharmaceutical companies have criticized this government-led price-setting strategy. The Pharmaceutical Research and Manufacturers of America (PhRMA) issued a statement denouncing the practices, asserting that adjustments should be made to insurers and third-party pharmacy benefits managers rather than imposing government price controls.
The full list of negotiated medications includes Anoro Ellipta, Biktarvy, Botox, Cimzia, Cosentyx, Entyvio, Erleada, Kisqali, Lenvima, Orencia, Rexulti, Trulicity, Verzenio, Xeljanz, Xeljanz XR, and Xolair.
