Medicare Expands Drug Price Negotiations to Include Popular Weight-Loss Medications

The Biden administration announces 15 additional drugs for Medicare price negotiations, a key component of the Inflation Reduction Act, as implementation shifts to the incoming Trump administration.

The Department of Health and Human Services revealed 15 new drugs, including Ozempic and Wegovy, that will be subject to Medicare price negotiations under the Inflation Reduction Act of 2022.
The selected drugs, used by over 5 million Medicare beneficiaries, accounted for $41 billion in gross prescription costs between November 2023 and October 2024.
Savings from the negotiated prices are projected to take effect in 2027, with manufacturers required to decide by February whether to participate or face tax penalties.
The program, initiated under President Biden, faces potential challenges as the incoming Trump administration and some Republicans have expressed opposition to the law.
The negotiations aim to reduce costs for seniors and the government, but legal challenges from pharmaceutical companies and industry concerns about reduced innovation remain ongoing.