In brief
In a significant move to curb rising medication costs, Medicare has extended its drug price negotiation program to include 15 new medications, including key treatments for Type 2 diabetes and HIV. The negotiations are expected to yield substantial savings for taxpayers and improve access to affordable prescriptions for seniors when they take effect in 2028.
NEW YORK — In an effort to combat soaring prescription drug costs, the Medicare program has unveiled a new initiative that allows the federal government to negotiate prices for 15 critical medications. This announcement comes from the administration under President Trump as part of a broader strategy to support seniors and taxpayers by negotiating lower prices.
The selected medications include expensive treatments for Type 2 diabetes, HIV, and many other chronic conditions that significantly burden Medicare's budget. The intention is to implement these negotiated prices by 2028, delivering considerable financial relief to taxpayers.
“For too long, seniors and taxpayers have been burdened by skyrocketing prescription drug prices,” stated Dr. Mehmet Oz, Administrator of the Centers for Medicare and Medicaid Services (CMS). “Under President Trump’s leadership, we are taking decisive action to ensure fair drug pricing, targeting those that are most impactful for patients.”
The new negotiation rules, effective under a law established in 2022, will enable CMS to engage directly with pharmaceutical manufacturers regarding the pricing of popular prescription drugs heavily used by older Americans. This year marks the third round of negotiations, resulting in a total of 40 medications receiving price reductions for Medicare beneficiaries.
Among the newly negotiated drugs are notable treatments such as Trulicity (a Type 2 diabetes drug), Biktarvy (an HIV medication), and Botox. The latter will see negotiated prices applied only for specific Medicare-covered applications, like treating migraines or overactive bladders.
CMS reports that approximately 1.8 million Medicare beneficiaries utilized these medications last year, which constituted around 6% of the total Part B and Part D expenditure. Additionally, one medication previously negotiated, Tradjenta, will undergo a new round of cost evaluation.
AARP commended the announcement as a major advancement. CEO Dr. Myechia Minter-Jordan emphasized that reducing drug prices remains a priority for older citizens across the political spectrum.
However, the pharmaceutical industry has voiced criticism of the negotiation program. The trade association PhRMA has argued that such government price-setting measures hurt innovation and proposed instead that focus should shift to managing insurer and pharmacy benefit manager costs.
The full list of new medications slated for negotiation includes Anoro Ellipta, Botox and Botox Cosmetic, Cimzia, Verzenio, and several others, reflecting a diverse array of therapeutic classes.
