Medicare Announced the Next Round of Drug Price Negotiations Include Ozempic
The Biden administration announced Friday, January 17, 2025, the next set of prescription drugs selected for Medicare price negotiations, featuring 15 medications, including Ozempic and Wegovy—widely used for diabetes and weight loss. Public frustration over their high prices has driven demand for more affordable options.
This marks the second round of negotiations under the Inflation Reduction Act of 2022. The newly negotiated prices, however, won’t take effect until 2027. The upcoming Trump administration has yet to declare its stance on the program, creating uncertainty about its future.
The drugs selected to undergo negotiations are:
- Ozempic; Rybelsus; Wegovy, for Type 2 diabetes and weight loss.
- Trelegy Ellipta, an asthma treatment.
- Xtandi, for prostate cancer.
- Pomalyst, a chemotherapy drug.
- Ibrance, a breast cancer drug.
- Ofev, for idiopathic pulmonary fibrosis.
- Linzess, a chronic constipation drug.
- Calquence, a cancer drug.
- Austedo; Austedo XR, for Huntington’s disease.
- Breo Ellipta, a COPD drug.
- Tradjenta, a diabetes drug.
- Xifaxan, for diarrhea and irritable bowel syndrome.
- Vraylar, an antipsychotic drug.
- Janumet; Janumet XR, diabetes drugs.
- Otezla, a psoriatic arthritis drug.
The negotiation process aims to reduce costs significantly for taxpayers, potentially saving billions. Drugmakers have a month to participate or face tax penalties unless they exit Medicare entirely, cutting off access to a massive market share. A Centers for Medicare and Medicaid Services (CMS) official confirmed discussions with manufacturers begin soon.