HHS Announces 15 Additional Drugs Selected for Medicare Drug Price Negotiations in Continued Effort to Lower Prescription Drug Costs for Seniors

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Medicare has selected 15 more drugs to negotiate directly with participating drug companies. Building on the success of the first round of negotiations, the aim is to lower prices for some more of the costliest prescription drugs.

Today, the U.S. Department of Health and Human Services (HHS), through the Centers for Medicare & Medicaid Services (CMS), announced the selection of 15 additional drugs covered under Medicare Part D for price negotiations. In accordance with the Inflation Reduction Act, the negotiations with participating drug companies for these 15 drugs will occur in 2025 and any negotiated prices will become effective in 2027. Between November 2023 and October 2024, about 5.3 million people with Medicare Part D coverage used these drugs to treat a variety of conditions, such as cancer, type 2 diabetes, and asthma. These selected drugs accounted for about $41 billion in total gross covered prescription drug costs under Medicare Part D, or about 14%, during that time period. When combined with the total gross covered prescription drug costs under Medicare Part D of the 10 drugs selected for the first cycle of negotiations over that same time period, this represents over a third of total gross covered prescription drug costs under Medicare Part D.

"Last year we proved that negotiating for lower drug prices works. Now we plan to build on that record by negotiating for lower prices for 15 additional important drugs for seniors," said HHS Secretary Xavier Becerra. "Today's announcement is pivotal – the Inflation Reduction Act is lowering prices for people on Medicare. HHS will continue negotiating in the best interest of people with Medicare to have access to innovative, life-saving treatments at lower costs."

"The Biden-Harris Administration continues to make history by announcing the latest round of drugs selected for the Medicare Drug Price Negotiation Program, with the goal of improving access to some of the costliest drugs while saving the American people billions of dollars," said CMS Administrator Chiquita Brooks-LaSure. "Improving prescription drug affordability for Medicare enrollees is the core of the Inflation Reduction Act, and the next cycle of negotiations will continue to strengthen Medicare for generations to come."

The selected drug list for the second cycle of negotiations is:

  • Ozempic; Rybelsus; Wegovy
  • Trelegy Ellipta
  • Xtandi
  • Pomalyst
  • Ibrance
  • Ofev
  • Linzess
  • Calquence
  • Austedo; Austedo XR
  • Breo Ellipta
  • Tradjenta
  • Xifaxan
  • Vraylar
  • Janumet; Janumet XR
  • Otezla
 
EO14087 override . . .

On January 20, 2025, on his first day back in office, President Trump rescinded many Biden-issued executive orders, including Executive Order No. 14087. Given that the IRA requires applicable drug manufacturers to fulfill certain statutory obligations once a drug is selected for negotiation, the rescission of Executive Order No. 14087 is unlikely to affect the selected drugs for 2027.

Additionally, since many of the drug pricing reforms implemented by the Biden Administration are housed within the IRA (e.g., the $2,000 annual cap on out-of-pocket prescription drug costs, inflation rebates, etc.), congressional action beyond the issuance of executive orders is likely necessary to meaningfully change course and thus obviate the possibility that Biden-era reforms will disappear in the near term. Nevertheless, rescission of this executive order at least suggests that drug price negotiations under the IRA are likely to be a focus of the Trump administration moving forward.


 
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