NEW YORK (AP) — In a significant move to tackle escalating prescription drug costs, the Trump administration has announced a new Medicare drug price negotiation program targeting 15 medications that treat serious conditions, including Type 2 diabetes, HIV, and arthritis. The announcement, made on Tuesday, aligns with growing calls from seniors and taxpayers for relief from high drug prices.
Among the selected drugs are some of the most expensive for Medicare, affecting a significant portion of the healthcare budget. “For too long, seniors and taxpayers have paid the price for skyrocketing prescription drug costs,” stated Dr. Mehmet Oz, Administrator of the Centers for Medicare and Medicaid Services (CMS). Under this initiative, expected to take effect in 2028, the government plans to negotiate fair prices directly with drug manufacturers.
This negotiation process is part of legislation passed in 2022 that empowers Medicare to haggle over prices for the most widely used and costly drugs, benefiting millions of older Americans. This year's negotiations mark the continuation of earlier efforts, escalating the total number of drugs subjected to price negotiations under this framework to 40.
The 15 newly announced drugs include data-rich treatments such as Trulicity, used for Type 2 diabetes, and Biktarvy for HIV management. Notably, Botox will also be included in the negotiations but will be limited to Medicare-covered applications like migraine treatments.
Over the previous year, about 1.8 million Medicare enrollees utilized these drugs, accounting for approximately 6% of the total spending in both Medicare Part B and D, according to CMS. However, the initiative has faced criticism from the pharmaceutical industry; the trade association PhRMA claims that government-mandated pricing is not the solution to high costs, advocating instead for regulatory reforms targeting insurers and pharmacy benefit managers.
“Older Americans across the political spectrum consistently say that lowering drug prices is a top priority,” noted Dr. Myechia Minter-Jordan, CEO of AARP, emphasizing the administration's efforts to make medications more affordable for seniors.
The complete list of drugs up for negotiation includes renowned medications such as Anoro Ellipta, Cimzia, Entyvio, and others, all chosen with the intent of lowering expenses and enhancing patient accessibility.
