The Trump administration announced this week that it will continue a Biden-era policy of negotiating lower medication costs for Medicare Part D recipients.
The Inflation Reduction Act, passed by Congress in 2022, allowed Medicare to negotiate drug prices. The law also set a $2,000 annual cap on out-of-pocket drug expenses for Medicare Part D enrollees.
After the federal government announced price caps on 10 popular medications in 2024, the Centers for Medicare & Medicaid Services said Tuesday it has negotiated lower prices for 15 drugs.
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The 10 drugs that the Biden administration said would be subject to price caps are scheduled to take effect in 2026. The 15 drugs announced by the Trump administration could see lower prices in 2027.
Among the medications the Centers for Medicare & Medicaid Services will negotiate lower prices for are popular weight-loss and diabetes drugs such as Ozempic, Rybelsus and Wegovy. The list price for a 30-day supply is $949; the agency said it has negotiated the cost down to $274 for Medicare Part D recipients.
Almost 2.3 million Medicare Part D recipients received these medications in 2024.
Another popular drug, Trelegy Ellipta, was among those with lower negotiated prices. The Trump administration said the list price for a 30-day supply is $654, but it will fall to $175 for Medicare Part D enrollees.
Drugmakers that do not participate in negotiations would be required to withdraw their drugs from the Medicare program or pay an excise tax of at least 65% of their U.S. sales.
Companies can either accept the government's proposed prices or submit a counteroffer.
After the first round of negotiations in 2024 and the second round in 2025, the government plans to negotiate prices for 15 additional drugs in 2026 and 20 more in 2027. Medicare is expected to reach pricing agreements on 60 drugs over four years, with new prices taking effect by 2029.
A full list of drugs is available and their negotiated prices are on the Centers for Medicare and Medicaid Services website.
