In brief
As part of a new initiative, the Trump administration announced that 15 essential medications will be part of Medicare's upcoming drug price negotiation program. This includes high-cost treatments for conditions such as Type 2 diabetes, HIV, and psoriasis. Medicare anticipates significant cost savings for taxpayers starting in 2028.
NEW YORK (AP) — In a significant step to reduce drug costs for seniors, the Trump administration has unveiled a new Medicare drug price negotiation program that includes 15 medications widely used to treat various conditions, including Type 2 diabetes, HIV, and arthritis. These negotiations allow the federal government to directly engage with pharmaceutical companies to lower prices, leading to potential savings for taxpayers that will begin in 2028.
For too long, seniors and taxpayers have paid the price for skyrocketing prescription drug costs, said Dr. Mehmet Oz, Administrator of the Centers for Medicare and Medicaid Services. The program targets drugs where Medicare spends a substantial amount of money, aiming to renegotiate their prices in line with what Medicare enrollees can afford.
Announced on Tuesday, the selected drugs include popular options like Trulicity, Biktarvy, and Botox, which will have their prices negotiated, particularly for medically covered uses such as treating chronic migraines. This year also marks a change, with both Medicare Part B and Part D medications now eligible for negotiation, expanding the scope of the program.
As part of the broader initiative and in relation to the Inflation Reduction Act, the newly identified drugs contribute to the total of 40 that will have lower prices for Medicare enrollees, enhancing affordability, especially for older Americans. AARP CEO Dr. Myechia Minter-Jordan hailed this announcement as a substantial move towards meeting the pressing needs of older citizens regarding medication affordability.
Critics, including representatives from pharmaceutical trade associations, have expressed concerns over government involvement in price-setting, arguing that such interventions could complicate access and diminish innovation in the drug market. Nonetheless, the CMS's efforts have been framed as a necessary response to the rising costs of prescription medications, hoping to bring relief to millions of Medicare recipients.
Overall, the list of medications selected for negotiation under this program includes: Anoro Ellipta, Biktarvy, Botox, Cimzia, Cosentyx, Entyvio, Erleada, Kisqali, Lenvima, Orencia, Rexulti, Trulicity, Verzenio, Xeljanz, Xeljanz XR, and Xolair. This ambitious undertaking seeks to alleviate financial burdens faced by Americans reliant on essential medications.
