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Consumer Daily Reports

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Ozempic is included in the new group of drugs

By Mark Huffman Consumer News: Government picks 15 more prescription drugs for Medicare price negotiation of ConsumerAffairs
January 17, 2025

The U.S. Department of Health and Human Services (HHS), through the Centers for Medicare & Medicaid Services (CMS), has selected 15 additional drugs for price negotiations under Medicare Part D.

The negotiations with drug manufacturers are scheduled to take place this year, with the newly negotiated prices set to take effect in 2027. These 15 drugs, used by approximately 5.3 million Medicare Part D enrollees between November 2023 and October 2024, accounted for about $41 billion in total gross covered prescription drug costs, representing 14% of Medicare Part D spending during that period, the Department said.

Combined with the first cycle of negotiations, this effort addresses over a third of total Medicare Part D prescription drug costs.

"Last year we proved that negotiating for lower drug prices works, said HHS Secretary Xavier Becerra. Now we plan to build on that record by negotiating for lower prices for 15 additional important drugs for seniors."

Expensive weight-loss drugs are included

The selected drugs for the second negotiation cycle include popular medications such as Ozempic, Rybelsus, Wegovy, and others used to treat conditions like cancer, type 2 diabetes, and asthma. Drug companies have until February 28, 2025, to decide on their participation in the negotiations. CMS will consider various factors, including clinical benefits and the drugs' impact on specific populations, during the negotiation process.

Here is the complete list of drugs:

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

$6 billion in savings

The Inflation Reduction Act contains a feature empowering Medicare to negotiate drug prices, aimed at alleviating financial burdens on seniors and people with disabilities. The first cycle of negotiations, completed in 2023, resulted in new prices expected to save Medicare an estimated $6 billion in net prescription drug costs.

Looking ahead, CMS said it plans to expand the negotiation program, selecting up to 15 additional drugs for the third cycle and up to 20 more for each subsequent cycle.

In related news, the Office of the Assistant Secretary for Planning and Evaluation (ASPE) released data projecting the impact of a new out-of-pocket cap on prescription drugs for Medicare Part D enrollees.

Approximately 11 million enrollees are expected to benefit from the $2,000 cap in 2025, collectively saving $7.2 billion, or about $600 per enrollee. Those without financial assistance could save even more, averaging $1,100 per enrollee.



Photo Credit: Consumer Affairs News Department Images


Posted: 2025-01-17 15:22:44

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