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Cancer, Diabetes Drugs Face Medicare Price Cuts
28 Jan
Summary
- Medicare will negotiate prices for cancer, diabetes, and autoimmune drugs.
- Negotiated prices for these drugs will go into effect in 2028.
- Drugmakers must decide by February 28 whether to participate in negotiations.
Medicare has announced the next wave of prescription drugs slated for price negotiations, impacting medications for conditions such as cancer, diabetes, Crohn's disease, ulcerative colitis, and rheumatoid arthritis. This initiative, empowered by the Biden administration's Inflation Reduction Act of 2022, grants the Centers for Medicare and Medicaid Services (CMS) the authority to negotiate prices for the most expensive drugs annually.
The selected drugs for this round represent a significant portion of Medicare's spending, totaling approximately $27 billion across Medicare Part B and Part D. Drug manufacturers must make a crucial decision by February 28 regarding their participation in these negotiations; opting out typically means removing their drugs from the Medicare market. The finalized negotiated prices are slated to be implemented starting in 2028.
This follows recent successful negotiations where CMS announced lower prices for prescription drugs, including Ozempic and Wegovy, which will take effect in 2027. The current list of drugs includes Anoro Ellipta, Biktarvy, Botox, Cimzia, Cosentyx, Entyvio, Erleada, Kisqali, Lenvima, Orencia, Rexulti, Trulicity, Verzenio, Xeljanz, and Xolair. Tradjenta, a Type 2 diabetes drug, is also being renegotiated after being selected in a previous round.
