The Biden administration on Friday unveiled the next 15 prescription drugs that will be subject to price negotiations between manufacturers and Medicare, kicking off the second phase of a landmark process that aims to make costly medications more affordable for seniors.
Topping the list are Novo Nordisk
’s blockbuster diabetes injection Ozempic, weight loss shot Wegovy and diabetes pill Rybelsus, which are considered one product in the talks since they all share the same active ingredient: semaglutide. Those treatments fueled the rise of the red-hot obesity market and have been difficult for patients to access due to cost, insurance coverage and supply constraints.
The agreed-upon prices for the second wave of drugs are scheduled to go into effect in 2027. But it’s unclear whether President-elect Donald Trump could try to change or scale back some of the law’s provisions when he takes office next week.
President Joe Biden’s Inflation Reduction Act gave Medicare the power to directly hash out drug prices with manufacturers for the first time in the federal program’s nearly 60-year history. Some congressional Democrats and consumer advocates have long pushed for the change, as many seniors around the country struggle to afford care.
About 5.3 million people with Medicare Part D coverage used the 15 drugs in the second round of talks to treat various conditions, such as asthma, cancer and Type 2 diabetes, between Nov. 1, 2023, and Oct. 31, 2024, according to a release from the Department of Health and Human Services on Friday. The group of medicines also accounted for roughly $41 billion, or 14%, of total Part D prescription drug costs during that time period, the release added.
When combined with the the 10 medications selected for the first cycle of negotiations, the 25 products represent 36% of all Medicare Part D prescription drug costs during that time period, the release said.
The drugs have been on the market for at least seven years without generic competitors, or 11 years in the case of biological products such as vaccines.