Medicare Drug Price Negotiations: Ozempic, Wegovy Among 15 Targeted Medications

Overview of Medicare's Drug Price Negotiation Program

The Biden administration announced that Medicare has selected 15 drugs, including the widely used Ozempic and Wegovy, for its latest round of price negotiations. The list also features important cancer medications. These negotiations are part of ongoing efforts to manage prescription drug costs for seniors, aiming for prices to take effect in 2027.

Selected Medications for Negotiation

• Novo Nordisk's Ozempic
• Rybelsus
• Wegovy
• GSK's Trelegy Ellipta
• Astellas and Pfizer's Xtandi
• Bristol-Myers Squibb's Pomalyst
• Pfizer's Ibrance
• Boehringer Ingelheim's Ofev
• AbbVie and Ironwood's Linzess
• AstraZeneca's Calquence
• Teva's Austedo
• GSK's Breo Ellipta
• Boehringer Ingelheim's Tradjenta
• Salix's Xifaxan
• AbbVie’s Vraylar
• Merck’s Janumet and Janumet XR
• Amgen’s Otezla

The medications selected will undergo negotiations to achieve lower prices, reflecting a push to alleviate financial burdens on seniors relying on Medicare. With 2.3 million seniors dependent on these potent drugs, the importance of these negotiations cannot be overstated.

Impact of Previous Negotiations

The first round of negotiations led to significant price decreases, with an estimated reduction between 40% and 80% for commonly used drugs, though actual savings varied. These earlier results are promising as they set a precedent for future negotiations, creating a substantial impact on drug affordability.

Future Steps for Drugmakers

As negotiations approach, drug manufacturers must decide by February 28 whether to participate or face heavy tax penalties while remaining within the Medicare and Medicaid frameworks. This decision will influence their profitability and compliance with federal pricing strategies.