HHS Announces 15 Additional Drugs for Price Negotiations

The Centers for Medicare and Medicaid Services (CMS) has 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. The selected drugs accounted for about $41 billion in total gross covered prescription drug costs under Medicare Part D, or about 14 percent, 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.

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; and Otezla.

In negotiating with participating manufacturers, CMS will consider the selected drug’s clinical benefit, the extent to which it addresses unmet medical needs, and its impact on specific populations, including people who rely on Medicare, among other considerations such as costs associated with research and development, as well as production and distribution for selected drugs.