Medicare Selects Ozempic, Wegovy for Price Negotiations: A Step Towards Lowering Prescription Drug Costs
Medicare's Drug Price Negotiations:
The U.S. Department of Health and Human Services (HHS) has selected 15 additional drugs, including Ozempic and Wegovy, for Medicare's price negotiations to lower prescription drug costs for seniors23.
Inflation Reduction Act:
This initiative is part of the Inflation Reduction Act, which aims to make drugs more affordable for seniors and people with disabilities by allowing Medicare to negotiate prices directly with drug manufacturers34.
Negotiation Process:
The negotiations will occur in 2025, and any negotiated prices will become effective in 2027. This is the second cycle of negotiations, following the first cycle which resulted in lower prices for 10 drugs effective in 202634.
Impact on Costs:
The selected drugs account for about 14% of total gross covered prescription drug costs under Medicare Part D, and the negotiations are expected to save billions of dollars for taxpayers and reduce out-of-pocket costs for Medicare enrollees23.
Future Negotiations:
Medicare will continue to select more drugs for negotiation in future years, with up to 20 drugs to be selected for each cycle after 2027, as outlined in the Inflation Reduction Act34.
Participating Manufacturers:
Drug companies with selected drugs have until February 28, 2025, to decide if they will participate in negotiations. Manufacturers that do not follow negotiation requirements will face penalties and taxes34.
Sources:
2. https://abcnews.go.com/US/wireStory/ozempic-wegovy-new-drugs-selected-medicares-price-negotiations-117784036
3. https://www.cms.gov/newsroom/press-releases/hhs-announces-15-additional-drugs-selected-medicare-drug-price-negotiations-continued-effort-lower