Ozempic, Wegovy Among 15 Drugs Added to Medicare Price Negotiations: Billions in Savings Expected
Washington, D.C. – The Biden administration has announced that Medicare will negotiate the prices of an additional 15 prescription drugs, including the widely used weight-loss and diabetes treatments Ozempic and Wegovy. This move, expected to save taxpayers billions, marks a critical step in the government’s effort to reduce prescription drug costs for older Americans.
The expanded list includes medications for asthma, psoriatic arthritis, and various cancers, such as Trelegy Ellipta, Otezla, and Xtandi. Together, the 25 drugs now targeted for price negotiations account for one-third of Medicare’s prescription spending, according to U.S. Health and Human Services (HHS) Secretary Xavier Becerra.
“For some people, this is a big deal,” Becerra said in a call with reporters, highlighting that high drug prices often force seniors to skip doses or stretch prescriptions.
Impact on Popular Drugs Like Ozempic and Wegovy
The addition of Ozempic and Wegovy to the negotiation list is particularly notable, given their skyrocketing popularity for managing diabetes and weight loss. Despite this, Medicare still does not cover these drugs for obesity due to federal laws prohibiting coverage for weight-loss treatments. Currently, they are only reimbursed when prescribed for diabetes or blood sugar management.
A proposed rule by the Biden administration aims to expand Medicare coverage for anti-obesity medications, but its future will depend on decisions made by the incoming Trump administration.
Medicare’s New Powers to Cut Drug Costs
These negotiations are the result of landmark legislation signed into law by President Joe Biden, which allows Medicare to haggle over the prices of the most expensive and widely used prescription drugs. Previously, Medicare was prohibited from engaging in such negotiations.
The first round of negotiations, announced last year, included 10 high-cost drugs such as blood thinners Xarelto and Eliquis and diabetes medications Jardiance and Januvia. Price reductions on these drugs are set to take effect in 2026, with the latest additions, including Ozempic and Wegovy, following in 2027.
Projected Savings and Legal Pushback
The newly negotiated prices are expected to save taxpayers $6 billion and Medicare enrollees $1.5 billion. A separate rule set to take effect this year will cap annual out-of-pocket prescription drug costs for Medicare beneficiaries at $2,000, offering immediate relief to millions.
However, the pharmaceutical industry remains strongly opposed to the program. Drug companies have filed lawsuits challenging the law, and the Pharmaceutical Research and Manufacturers of America (PhRMA) has called on the Trump administration and Congress to “fix” it.
“In rushing out this list in their final days, the Biden administration once again fails to address the true challenges facing seniors and Medicare,” said Stephen Ubl, PhRMA’s president and CEO.
AARP and Advocates Push Back
Advocacy groups like the AARP are vowing to defend the legislation against any attempts to weaken it.
“For too long, big drug companies have padded their profits by setting outrageous prices at the expense of American lives, forcing seniors to skip prescriptions they can’t afford,” said Nancy LeaMond, AARP’s Executive Vice President.
What’s Next?
While the savings from these negotiations won’t fully materialize until 2026 and 2027, the Centers for Medicare & Medicaid Services (CMS) has committed to expanding the program to include more drugs in the coming years.
The 15 newly selected drugs include Ozempic, Wegovy, Rybelsus, Trelegy Ellipta, Xtandi, Pomalyst, Ibrance, Ofev, Linzess, Calquence, Austedo (and Austedo XR), Breo Ellipta, Tradjenta, Xifaxan, Vraylar, Janumet (and Janumet XR), and Otezla.
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Source : Swifteradio.com
