HHS announces 15 additional drugs for Medicare price negotiations

Xavier Becerra

Credit: HHS

The US Department of Health and Human Services (HHS), through the Centers for Medicare & Medicaid Services (CMS), today announced a significant step forward in reducing prescription drug costs for Medicare beneficiaries. The agency has selected 15 additional drugs covered under Medicare Part D for price negotiations, a key provision of the Inflation Reduction Act.¹

Negotiations with participating drug manufacturers will take place in 2025, and the newly negotiated prices will take effect in 2027. These medications, critical for treating conditions such as cancer, type 2 diabetes, and asthma, were used by approximately 5.3 million Medicare Part D enrollees between November 2023 and October 2024. During this period, these drugs accounted for $41 billion—14% of total gross covered prescription drug costs under Medicare Part D.¹

“Last year, we proved that negotiating for lower drug prices works,” said HHS Secretary Xavier Becerra. “Today’s announcement is pivotal – the Inflation Reduction Act is lowering prices for people on Medicare. HHS will continue negotiating in the best interest of people with Medicare to ensure access to innovative, life-saving treatments at lower costs.”¹

CMS Administrator Chiquita Brooks-LaSure emphasized the long-term benefits of the initiative. “The Biden-Harris Administration continues to make history by announcing the latest round of drugs selected for the Medicare Drug Price Negotiation Program. Improving prescription drug affordability for Medicare enrollees is the core of the Inflation Reduction Act, and the next cycle of negotiations will continue to strengthen Medicare for generations to come.”¹

The 15 selected drugs

The selected drugs include treatments for a wide range of conditions:¹

• Semaglutide (Ozempic; Rybelsus; Wegovy) - Diabetes
• Fluticasone furoate, umeclidinium, and vilanterol inhalation powder (Trelegy Ellipta) - COPD
• Enzalutamide (Xtandi) - Metastatic Castration-Resistant Prostate Cancer
• Pomalidomide (Pomalyst) - Multiple Myeloma
• Palbociclib (Ibrance) - HR-positive, HER2-negative advanced or metastatic breast cancer
• Nintedanib (Ofev) - Idiopathic Pulmonary Fibrosis, ILDs with Progressive Phenotype, SSo-ILD
• Linactolide (Linzess) - IBS-C, Chronic Idiopathic Constipation in Adults, Functional Consitipation in Pediatrics
• Acalabrutinib (Calquence) - Mantle Cell Lymphoma, CLL, SLL
• Deutetrabenazine (Austedo; Austedo XR) - Chorea associated with Huntington’s disease
• Fluticasone furoate / Vilanterol (Breo Ellipta) - COPD, Asthma
• Linagliptin (Tradjenta) - Type 2 Diabetes
• Rifaximin (Xifaxan) - IBS-D, Hepatic Encephalopathy, Traveler’s Diarrhea
• Cariprazine (Vraylar) - Schizophrenia, Bipolar I Disorder
• Sitagliptin/Metformin (Janumet; Janumet XR) - Type 2 Diabetes
• Apremilast (Otezla) - Psoriatic Arthritis, Plaque Psoriasis

"These 15 drugs, together with the 10 drugs that Medicare already negotiated, represent about a third of Medicare Part D spending on prescription drugs, which means the lower prices my Inflation Reduction Act is delivering will put money back in seniors’ pockets across the country," said President Joe Biden in a statement announcing the selection.²

Drug companies with selected medications have until February 28, 2025, to decide whether to participate in the negotiations. CMS will assess factors such as clinical benefit, how these drugs address unmet medical needs, and their impact on specific populations, including Medicare enrollees. The agency will also consider research and development costs and production expenses.¹

The announcement follows the success of the first cycle of Medicare drug price negotiations, which focused on 10 drugs and resulted in discounts ranging from 38% to 79%. If these prices had been in effect in 2023, they would have saved $6 billion in net prescription drug costs. In 2026, the reduced prices are projected to save Medicare beneficiaries $1.5 billion in out-of-pocket costs.¹

Looking ahead

"My Administration completed the first round of price negotiation last year and delivered dramatic savings, slashing the price of some of the most commonly used drugs in Medicare by about 40 to 80 percent," said President Biden. "The Inflation Reduction Act put the country on a path to lower drug prices. I’m proud of my Administration’s implementation of this law to deliver lower prices for America’s seniors."²

The Inflation Reduction Act enables Medicare to negotiate prices for up to 15 additional drugs in 2026 and up to 20 more in subsequent years. Beginning in 2025, Medicare enrollees will also benefit from a $2,000 annual cap on out-of-pocket drug costs, potentially saving 11 million beneficiaries a combined $7.2 billion.¹

References:

1. HHS. HHS Announces 15 Additional Drugs Selected for Medicare Drug Price Negotiations in Continued Effort to Lower Prescription Drug Costs for Seniors. HHS. January 17, 2025. Accessed January 17, 2025. https://www.cms.gov/newsroom/press-releases/hhs-announces-15-additional-drugs-selected-medicare-drug-price-negotiations-continued-effort-lower

2. Biden J. Statement from President Joe Biden on the Next Fifteen Drugs Selected for Medicare Drug Price Negotiation. The White House. January 17, 2025. Accessed January 17, 2025. https://www.whitehouse.gov/briefing-room/statements-releases/2025/01/17/statement-from-president-joe-biden-on-the-next-fifteen-drugs-selected-for-medicare-drug-price-negotiation/