The first-ever drug pricing negotiations by Medicare, initiated under President Joe Biden, face an uncertain future under the upcoming Trump administration. Mandated by the Inflation Reduction Act of 2022, these negotiations aim to make medications more affordable for Medicare beneficiaries by allowing the program to directly negotiate prices with drug manufacturers. Last year, Medicare successfully lowered prices on 10 drugs and is set to announce a list of 15 additional prescription drugs for negotiation by February 1. Possible candidates for negotiation include Semaglutide (found in Ozempic and Wegovy), Ibrance for breast cancer, Trelegy for asthma, and Tradjenta for diabetes.
Despite the challenges of ending the negotiation program, recent actions by allies of President-elect Donald Trump may pose a threat to its continuation. Some Republicans have introduced legislation to repeal the Inflation Reduction Act and dismantle the drug price negotiation program. This ideological opposition is concerning to experts like Juliette Cubanski from KFF, who highlights the potential for support within the Trump administration to eliminate the program.
The Biden administration has already announced lower prices for the 10 most expensive prescription drugs covered by Medicare, effective in 2026. Negotiated prices for an additional 15 drugs are expected in 2027, with more to follow in the coming years. The program is projected to generate significant savings for the government and taxpayers, despite facing legal challenges from the pharmaceutical industry.
The stance of the incoming Trump administration on these negotiations remains unclear. While efforts to repeal the negotiation program could carry political risks, the lack of a replacement plan poses challenges for addressing medication affordability issues faced by many Americans.
A recent survey revealed that a quarter of adults struggle to afford their medications, with many reporting non-adherence due to costs. With uncertainties surrounding the future of Medicare drug price negotiations, the impact on patients and the healthcare system remains a critical concern.
The Trump administration’s decision to maintain high drug prices has raised significant concerns, according to Mulcahy. He noted that such a move could be seen as a challenging situation for the administration in terms of public perception. On the contrary, there might be a potential political advantage for Trump in retaining the Medicare provision, especially if a drug like Ozempic is included in the coverage list this year, as pointed out by Cubanski.
Cubanski suggested that Trump could use the inclusion of Ozempic on the list to claim a victory for patients by negotiating a substantial discount on the drug. Throughout his first term, Trump has been vocal about his efforts to reduce drug prices, as highlighted by Lawrence Gostin, the director of the O’Neill Institute for National and Global Health Law at Georgetown University. Gostin emphasized that supporting negotiations for lower prices, particularly for popular drugs like Ozempic, could be beneficial for Trump politically.
Gostin further explained that Ozempic is highly demanded, especially among Trump’s support base, with rural residents being particularly reliant on such medications due to issues related to weight management and diabetes. Therefore, making weight loss drugs more accessible and affordable could garner widespread approval. Moreover, Gostin noted that since the legislation has already been passed by Congress, Trump may find it easier to expand and enforce drug price negotiations.
In conclusion, Gostin highlighted the compelling political motives behind advocating for negotiations to lower drug prices. He emphasized that supporting such initiatives could prove to be a win-win situation for Trump, given the popularity of drugs like Ozempic and the pressing health needs of certain demographics within his supporter base.
