15 Additional Drugs Selected for Medicare Drug Price Negotiations

HHS/CMS Drugs pricing negotiation.

August 2023 . . . HHS announced they would negotiate the pricing for 10 drugs covered under Medicare Part D program. This was the first cycle of selected drugs to be negotiated by the U.S. Department of Health and Human Services or HHS as many know it.

The first cycle of negotiations, with the participating drug manufacturers resulted in lower pricing for all 10 drugs. Those prices will become effective one year later or January 1, 2026 (sigh . . .). And the oh well moment . . . if the new prices had been in effect in 2023? The reduced pricing would have saved an estimated $6 billion in net covered prescription drug costs, A reflection of reduced costs for people of approximately 22 percent across the 10 selected drugs and if the reductions are passed on to users.

The new, lower prices range from 38 to 79 percent discounts off of list prices. In 2026, people with Medicare prescription drug coverage are expected to see aggregated estimated savings of $1.5 billion in their personal out-of-pocket costs. Twenty-five percent (25%) savings or “aggregated estimated savings of $1.5 billion in their personal out-of-pocket costs.”

Where did the rest of the $6 billion go? 

The Biden Administration knew full well the new administration would jump all over any savings from another planned negotiation of pharmaceuticals. So!

On January 17th, HHS/CMS selected the next bunch of pharmaceuticals (15) to be negotiated. The companies involved in the second cycle of the Drug Price Negotiation Program will have until February 28, 2025 to decide if they will participate in negotiations. Ozempic, Rybelsus, and Wegovy are on the list of 16 drugs as one entity. The 14 remaining drugs can be found at “HHS Announces 15 Additional Drugs Selected for Medicare Drug Price Negotiations,” CMS.