Medicare Negotiates Drug Prices for 15 New Meds

The federal government has identified 15 new medications for the Medicare drug price negotiation program, empowering it to directly negotiate prices with manufacturers. This initiative targets some of the most expensive drugs within Medicare, including treatments for Type 2 diabetes, HIV, and arthritis. The negotiations, authorized by a 2022 law, are projected to yield substantial savings for taxpayers when implemented starting in 2028. This marks the third round of negotiations, bringing the total number of drugs with reduced prices for Medicare enrollees to 40. Notably, this year includes medications covered under Medicare Part B, such as infused and injected outpatient prescriptions, alongside those covered by Medicare Part D. The list includes popular drugs like Trulicity and Biktarvy, as well as Botox for medical uses. Approximately 1.8 million Medicare beneficiaries used these 15 drugs last year, accounting for about 6% of total Part B and Part D spending.