1 of 3 | The Department of Health and Human Services on Friday announced 15 drugs, including Ozempic and Wegovy, that will have their prices negotiated. File Photo by John Angelillo/UPI | License Photo
Jan. 17 (UPI) — Drugs used to treat cancer, diabetes and other chronic conditions are among 15 picked for negotiations that could result in lower prices for patients, the Department of Health and Human Services confirmed Friday.
The 15 drugs selected by HHS are all covered under Medicare Part D and represent the second round of negotiations between drug companies and the department, with a goal of lowering costs for Medicare patients.
Popular diabetes drugs Ozempic, Rybelsus and Wegovy, which are also used for weight loss are among the 15 announced Friday.
Negotiations between the government agency and drug companies will take place this year with any agreed upon price changes taking effect in 2027. Drug manufacturers can choose whether or not to enter negotiations with the government for a collective price for Medicare patients.
The 15 drugs announced Friday represented around $41 billion in total gross drug costs under Medicare Part D last year.
The program was first announced by President Joe Biden in August of 2023 as a way of making prescription drugs more affordable for Americans. The program is part of the Biden administration’s Inflation Reduction Act.
Last February, the White House announced the first round of negotiations under the program, which covered the 10 most expensive prescription drugs covered under Medicare.
This past August, the Biden administration said the first round of negotiations would save Medicare users a collective $6 billion. Prices from the first round of negotiations go into effect next year.
“My Administration completed the first round of price negotiation last year and delivered dramatic savings, slashing the price of some of the most commonly used drugs in Medicare by about 40 to 80%,” Biden said in a statement issued by the White House Friday.
“The Inflation Reduction Act put the country on a path to lower drug prices. I’m proud of my Administration’s implementation of this law to deliver lower prices for America’s seniors.”
Friday’s announcement aims to expand the scope of that initiative by including drugs that treat Type II diabetes, various types of cancer and asthma among conditions.
“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,” Health and Human Services Secretary Xavier Becerra said in the department’s statement.
“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 Centers for Medicare and Medicaid Services is expected to pick 15 more drugs for negotiation at some point in the future under the Inflation Reduction Act. The legislation also calls for additional 20-drug selections beyond that.
