Listen to the article
The Trump administration announced Tuesday that 15 additional medications will be subject to Medicare’s drug price negotiation program, including treatments for Type 2 diabetes, HIV, and arthritis. The program, created under a 2022 law, allows the federal government to directly negotiate prices with pharmaceutical manufacturers for the most costly and widely used prescription drugs.
“For too long, seniors and taxpayers have paid the price for skyrocketing prescription drug costs,” said Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz. “Under President Trump’s leadership, CMS is taking strong action to target the most expensive drugs in Medicare, negotiate fair prices, and make sure the system works for patients — not special interests.”
The latest round of negotiations represents the third phase of the program, bringing the total number of medications with government-negotiated prices to 40 when combined with previous rounds. These newly negotiated prices are scheduled to take effect in 2028.
This marks the first time that medications covered under Medicare Part B – outpatient prescriptions administered in clinical settings like injections or infusions in doctors’ offices – have been included in the negotiation program. In previous rounds, only retail prescription drugs covered under Medicare Part D were eligible.
Among the medications selected for negotiation is Trulicity, a popular Type 2 diabetes treatment, and Biktarvy, a medication used to treat HIV. Notably, Botox is also included, though negotiations will only apply to its Medicare-covered therapeutic uses such as treating migraines and overactive bladders, not its cosmetic applications.
The list also includes treatments for psoriasis, ulcerative colitis, chronic lung disease, depression, and various forms of cancer. According to the administration, approximately 1.8 million Medicare Part B or Part D enrollees used these 15 drugs over the past year, accounting for roughly 6% of total spending across both Medicare programs.
The administration also announced that one previously negotiated Type 2 diabetes drug, Tradjenta, will undergo renegotiation.
The complete list of medications added to the negotiation program includes Anoro Ellipta, Biktarvy, Botox and Botox Cosmetic, Cimzia, Cosentyx, Entyvio, Erleada, Kisqali, Lenvima, Orencia, Rexulti, Trulicity, Verzenio, Xeljanz and Xeljanz XR, and Xolair.
AARP CEO Dr. Myechia Minter-Jordan praised Tuesday’s announcement as a “significant step forward” in addressing drug pricing concerns. “Older Americans across the political spectrum consistently say that lowering drug prices is a top priority, and we thank the Administration for protecting Medicare’s ability to meet that need,” she said in a statement.
The pharmaceutical industry, however, remains critical of the program. PhRMA, the leading trade association for pharmaceutical companies, argued that government price setting is the wrong approach. Elizabeth Carpenter, PhRMA’s Executive Vice President of Policy and Research, suggested that policymakers seeking to lower costs should instead focus on reining in insurers and third-party pharmacy benefit managers.
This latest round builds upon earlier negotiation efforts. In November, CMS announced negotiated prices for 15 drugs that will take effect in 2027. Reduced prices for the first 10 drugs negotiated under the Biden administration in 2024 went into effect at the beginning of this year.
The medication list includes several blockbuster drugs that represent significant Medicare spending. By targeting these high-cost medications, the administration aims to deliver substantial savings to both Medicare beneficiaries and taxpayers when the negotiated prices are implemented.
The program stems from the Inflation Reduction Act, which gave Medicare unprecedented authority to negotiate drug prices directly with manufacturers – a power it had been explicitly prohibited from exercising since the creation of the Medicare Part D program in 2003.
Fact Checker
Verify the accuracy of this article using The Disinformation Commission analysis and real-time sources.
8 Comments
As someone who relies on Medicare, I’m encouraged to see the government taking on the drug industry’s pricing power. The ability to directly negotiate rates could be a game-changer, though the details will be critical. I’ll be closely following how this program develops over time.
While the goal of lowering drug prices is admirable, I’m a bit skeptical that this program will have a meaningful impact. The pharmaceutical industry has deep pockets and influence, so I worry they may find ways to work around the negotiations. Still, any steps to rein in runaway drug costs are worth watching closely.
That’s a fair point. The drug industry’s lobbying power is formidable, so the government will need to be vigilant and tough in these negotiations. Let’s hope the program can deliver real savings for Medicare recipients.
While the goals of this program are laudable, I have concerns about its long-term effectiveness. The pharmaceutical lobby has consistently found ways to undermine similar efforts in the past. Still, I’m hopeful that the government can stand firm and deliver meaningful savings for Medicare beneficiaries.
The long delay until 2028 before the negotiated prices take effect is disappointing. Patients need relief from soaring drug costs now, not in 6 years. I hope the administration can find ways to accelerate the timeline and deliver savings more quickly.
You’re absolutely right. Patients can’t afford to wait that long for price relief. The administration should explore options to speed up the implementation if possible.
It’s good to see the government taking action on this critical issue. High drug prices put essential medications out of reach for many Americans, especially seniors on fixed incomes. Hopefully this program can serve as a model for future efforts to make healthcare more affordable and accessible.
This is an interesting move by the Trump administration to negotiate Medicare drug prices. It could help make critical medications more affordable for seniors, though the long timeline to 2028 is a bit disappointing. I’m curious to see how the negotiation process unfolds and what kind of savings it generates for patients.