On January 22, U.S. Senator Tammy Baldwin (D-WI) praised the U.S. Department of Health and Human Services (HHS) for announcing that Medicare will begin negotiating prices for 15 more prescription drugs. These drugs treat conditions such as cancer, type 2 diabetes, and asthma. This progress stems from the Baldwin-supported Inflation Reduction Act, which allowed Medicare to negotiate drug prices for the first time.
Senator Baldwin’s Statement
Senator Baldwin emphasized how these negotiations aim to reduce financial burdens on families, especially seniors. “I’m committed to bringing costs down for Wisconsin families, and high on that list is tackling the soaring price of prescription drugs. This announcement is a win for seniors and taxpayers as we take another step toward standing up to big drug companies and negotiating for lower prices,” said Baldwin. She also highlighted how these efforts pressure pharmaceutical companies to lower costs for all Americans who rely on critical medications.
Key Details of the Drug Negotiations
Between November 2023 and October 2024, approximately 5.3 million people with Medicare Part D coverage used these 15 selected drugs, which accounted for around $41 billion in prescription drug costs. These negotiations, when combined with a prior list of 10 drugs selected for the first negotiation cycle, represent 36% of total prescription drug costs under Medicare Part D during that same period.
The selected drugs treat various health conditions, including diabetes, asthma, cardiovascular diseases, and cancer. Some notable medications include:
Ozempic, Rybelsus, and Wegovy for type 2 diabetes and weight management
Trelegy Ellipta and Breo Ellipta for asthma and COPD
Tradjenta and Janumet for type 2 diabetes
Xtandi and Ibrance for cancer
Impact of the Inflation Reduction Act
The Inflation Reduction Act has been instrumental in reducing health care costs. In August 2023, HHS announced the first group of 10 drugs for negotiation, which will result in new, lower prices effective January 1, 2026. If these prices had been active in 2023, they would have saved an estimated $6 billion in net drug costs, with price reductions ranging from 38% to 79% off the list price. Medicare beneficiaries are expected to save an estimated $1.5 billion in out-of-pocket costs in 2026.
Future Negotiations
The Centers for Medicare and Medicaid Services (CMS) plans to expand negotiations in the coming years. By 2025, up to 15 more drugs will be added to the negotiation list, and up to 20 drugs will be selected each year thereafter. This ongoing process aims to ensure that seniors and people with disabilities continue to benefit from more affordable medications.
Full List of Selected Drugs in the Second Cycle:
Ozempic
Rybelsus
Wegovy
Trelegy Ellipta
Xtandi
Pomalyst
Ibrance
Ofev
Linzess
Calquence
Austedo and Austedo XR
Breo Ellipta
Tradjenta
Xifaxan
Vraylar
Janumet and Janumet XR
Otezla
A Step Toward Affordable Health Care
These negotiations represent a significant step toward making prescription drugs more affordable for millions of Americans. By enabling Medicare to negotiate prices, the government is addressing high drug costs that burden seniors and taxpayers alike. This policy shift not only delivers financial relief to individuals but also promotes transparency and accountability within the pharmaceutical industry.
For seniors and families struggling with high medication costs, these changes offer hope for a more affordable future. As negotiations expand in the coming years, more Americans will see the benefits of reduced prescription drug prices under Medicare.
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