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The U.S. Department of Health and Human Services unveiled 15 additional drugs chosen for the Medicare Drug Price Negotiation Program on Friday. Many healthcare leaders are applauding the list of selected drugs, while drug manufacturers are coming out against it.
Under the program, which was created through the Inflation Reduction Act, the federal government is able to negotiate the price of selected drugs with participating drug companies. The first 10 drugs were announced in August 2023 and the negotiated prices will go into effect in 2026. Negotiations for the next 15 drugs will take place this year and the negotiated prices will go into effect in 2027.
The additional drugs selected for the program are:
Ozempic; Rybelsus; Wegovy Trelegy Ellipta Xtandi Pomalyst Ibrance Ofev Linzess Calquence Austedo; Austedo XR Breo Ellipta Tradjenta Xifaxan Vraylar Janumet; Janumet XR Otezla
These drugs accounted for about $41 billion in total gross covered prescription drug costs under Medicare Part D between November 2023 and October 2024, according to HHS. In addition, during the same time period, about 5.3 million people with Medicare Part D coverage used these drugs for conditions like cancer, type 2 diabetes and asthma.
While HHS is touting the program and additional list of drugs as a way to reduce drug prices, some of the drug manufacturers selected for the program say the program is causing more harm than good. For example, Pfizer, the manufacturer of Ibrance, argued in a statement that the Inflation Reduction Act “establishes a dangerous price-setting system that allows the government to dictate the value and price of certain medicines, discouraging continued development.”
Novo Nordisk — the manufacturer of Wegovy, Ozempic and Rybelsus — also came out against the list of additional drugs for the program.
“Novo Nordisk remains opposed to government price setting through the IRA and has significant concerns about how the law is being implemented by this administration, including aggregating multiple products that individually would not meet the requirements of the statute,” a spokesperson said in an email.
It’s worth noting that multiple drug companies (including Novo Nordisk) have filed lawsuits against the drug price negotiation program. Teva Pharmaceuticals is the latest to do so.
While manufacturers oppose HHS’ announcement, AARP, a nonprofit for Americans aged 50 and older, applauded the list of additional drugs chosen for the negotiation program.
“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. … With Medicare negotiating to lower prices on more drugs and the new out-of-pocket cap, seniors are finally starting to see relief from high drug prices,” said Nancy LeaMond, AARP executive vice president and chief advocacy and engagement officer, in a statement.
Patients for Affordable Drugs, a patient advocacy organization, also celebrated the announcement, stating that it will lower costs for millions of patients. However, more work is needed to protect the negotiation program, according to Merith Basey, executive director of Patients for Affordable Drugs.
“Let’s be clear: we must keep pushing to expand the wildly popular Medicare negotiation program,” Basey said in a statement. “Patients fought extremely hard for the passage of these reforms and they continue to vigorously defend them against pharma’s attacks – because nobody should have to choose between life-saving drugs and their basic needs.”
One healthcare executive — Brooke Boyarsky Pratt, founder and CEO of knownwell — is particularly excited about the selection of Ozempic and Wegovy for the negotiation program. The company offers metabolic health services, primary care, nutrition counseling and health coaching.
“Price negotiations for Ozempic and Wegovy have the potential to completely change patient access to comprehensive obesity care,” Boyarsky Pratt told MedCity News. “As has been discussed at length, the question about GLP-1s is about their affordability, not their efficacy. HHS has the opportunity to make these medications affordable for those living with obesity across America and pave the way for commercial plans to cover these medicines at scale.”
Photo: cagkansayin, Getty Images
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