In brief
In a significant move towards reducing prescription drug costs, Medicare has selected 15 high-cost medications for negotiation directly with manufacturers. The program, initiated under the Trump administration, targets some of the most widely used drugs among older Americans. Among the medications on the list are Trulicity, Biktarvy, and Botox, with the potential for substantial savings by the year 2028. This action is seen as a critical step to lower drug prices for enrollees, amidst criticisms from pharmaceutical representatives regarding government price controls.
NEW YORK (AP) — Medicare has announced plans to negotiate prices for 15 new medications, including drugs for Type 2 diabetes, HIV, and arthritis. This initiative allows the federal government to negotiate directly with drug manufacturers, a strategy that is expected to lead to significant savings for taxpayers when new prices take effect in 2028.
According to Centers for Medicare and Medicaid Services (CMS) Administrator Dr. Mehmet Oz, the move is aimed at addressing the rising costs of prescription drugs that have burdened seniors and taxpayers. For too long, seniors and taxpayers have paid the price for skyrocketing prescription drug costs, Oz stated. Under President Trump’s leadership, CMS is taking strong action to target the most expensive drugs in Medicare, negotiate fair prices, and ensure the system works for patients—not special interests.
The new drugs eligible for negotiation include treatments such as Trulicity, indicated for Type 2 diabetes, and Biktarvy, used to treat HIV. Notably, Botox, commonly used for cosmetic purposes, will also have its price negotiated when utilized for medical treatments like migraines or overactive bladders. This year marks a turning point as for the first time, drugs covered under Medicare Part B, including those administered in outpatient settings, will be included in the negotiation process.
The full list unveiled by Medicare encompasses various treatments beyond those for diabetes and HIV, targeting conditions from psoriasis to different types of cancer. Approximately 1.8 million Medicare Part B or Part D enrollees utilized these drugs last year, which represented about 6% of total spending in these programs.
AARP CEO Dr. Myechia Minter-Jordan praised the announcement as a significant step forward, highlighting a bipartisan call among older Americans for efforts to lower drug costs. However, the leading pharmaceutical industry association criticized the legislative framework supporting the negotiations, the Inflation Reduction Act, arguing it sets a harmful precedent for pricing in the industry.
This ongoing effort by Medicare continues to evolve, marking the third round of negotiations aimed at curbing the costs of prescription medications that are critical to the health and well-being of many older Americans.
