WASHINGTON (AP) — The Biden administration announced on Friday that popular weight loss and diabetes medications like Ozempic and Wegovy will now be part of Medicare’s list of drugs to be negotiated directly with manufacturers. These negotiations, involving 15 additional drugs, are expected to result in significant savings for taxpayers if agreements are reached. Some of the other medications included in the list are Trelegy Ellipta for asthma, Otezla for psoriatic arthritis, and several cancer treatments.
U.S. Health and Human Services Secretary Xavier Becerra emphasized the importance of these negotiations, especially for those who struggle with high out-of-pocket costs and may have to skip doses to make their prescriptions last longer. This move brings the total number of drugs with reduced prices for Medicare enrollees to 25, which account for a substantial portion of Medicare spending on prescriptions.
Despite these positive changes, Medicare recipients will still not be able to access obesity drugs through the program due to federal restrictions. The Biden administration has proposed a rule to cover anti-obesity medications for weight loss, a decision that the incoming Trump administration will need to consider.
The cost savings on these drugs are a result of a new law that allows Medicare to negotiate prices for popular and expensive prescription drugs for older Americans. The law, supported by Democrats and signed by President Biden, has faced opposition from Republicans, but their stance on repealing or weakening it remains uncertain.
Pharmaceutical companies have expressed concerns over the negotiation process and have called for revisions to the law. The industry lobby, Pharmaceutical Research and Manufacturers of America, highlighted the challenges facing seniors and Medicare due to these developments.
Last year, Centers for Medicare & Medicaid Services announced pricing agreements with companies for 10 drugs in the initial round of negotiations, resulting in reduced list prices for commonly used medications like blood thinners and diabetes drugs. Despite these changes, drug company executives have indicated minimal impact on their financial performance.
The AARP has pledged to defend the law against any attempts to weaken it in the Republican-controlled Congress. The organization aims to hold big drug companies accountable for their pricing practices and ensure fair access to affordable medications for seniors.
“Outrageous prices at the expense of American lives, forcing seniors to skip prescriptions they can’t afford,” AARP Executive Vice President Nancy LeaMond said in a statement. The savings from the new list prices for those drugs were expected to generate about $6 billion for taxpayers and $1.5 billion for Medicare enrollees. Negotiated prices for the first 10 drugs don’t kick in until 2026. Prices for the 15 additional drugs announced today won’t go into effect until 2027. But some Medicare enrollees should see relief from drug prices in a new rule this year that caps annual out-of-pocket costs on prescription drugs to $2,000. Under the law, more drugs will be added to the negotiation process in coming years. The Centers for Medicare & Medicaid Services say the 15 drugs are 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 made by Novo Nordisk, which is based in Denmark and has U.S. headquarters in Plainsboro, New Jersey.
