Medicare targets 18 high-cost drugs in new price negotiation round

The US government has revealed the latest list of prescription drugs set for Medicare price negotiations. This third round of talks, announced under the Inflation Reduction Act of 2022, targets 18 medications from major pharmaceutical companies. The selected drugs accounted for roughly $27 billion in Medicare spending last year.

The negotiations will cover drugs under both Medicare Part B and Part D. Part B includes medications administered in clinics or hospitals, while Part D focuses on prescription drugs. Among the listed treatments are Botox, Trulicity, and Biktarvy, alongside 15 others. Notably, Botox is covered for medical uses like migraines and muscle stiffness but not for cosmetic procedures.

Drugmakers can opt out of the talks, though doing so would likely mean withdrawing their products from Medicare—a key market. The process follows earlier negotiations in 2023, which secured lower prices for drugs like Ozempic and Wegovy, set to take effect in 2027. This round's agreements will apply from 2028.

The selected medications come from major firms, including Eli Lilly, Pfizer, and Johnson & Johnson. Officials estimate the negotiations could save Medicare around $8.5 billion, reducing costs by about 36% for the 2027 prices.

The final prices from these talks will be implemented in 2028. The savings are expected to ease financial pressure on Medicare while maintaining access to critical treatments. The negotiations continue under the Inflation Reduction Act's framework, targeting high-cost drugs each year.