Feds target Ozempic, Wegovy for lower Medicare prices

FILE-Ozempic and Wegovy are displayed on a table. (Michael Siluk/UCG/Universal Images Group via Getty Images)

Ozempic and Wegovy are among the 15 drugs added to Medicare's list of medications that will be negotiated for lower prices. 

This is part of an effort to lower prescription drug prices for Medicare recipients. Costs for these drugs and others will be discussed between the federal government and drug manufacturers.

RELATED: Medicare premiums increasing in 2025

According to the Associated Press, the price negotiations for the 15 additional drugs on the list will be managed by the incoming Trump administration.

What 15 drugs were selected for the list?

  • Ozempic; Rybelsus; Wegovy
  • Trelegy Ellipta
  • Xtandi
  • Pomalyst
  • Ibrance
  • Ofev
  • Linzess
  • Calquence
  • Austedo; Austedo XR
  • Breo Ellipta
  • Tradjenta
  • Xifaxan
  • Vraylar
  • Janumet; Janumet XR
  • Otezla

What they're saying:

"In rushing out this list in their final days, the Biden administration once again fails to address the true challenges facing seniors and Medicare," Stephen Ubl, the president and CEO of Pharmaceutical Research and Manufacturers of America, said in a statement provided to the Associated Press. 

RELATED: Deals will lower prices of Medicare's costliest drugs, White House says — see the list

In a statement obtained by the AP, AARP Executive Vice President Nancy LeaMond said "For too long, big drug companies have padded their profits by setting outrageous prices at the expense of American lives, forcing seniors to skip prescriptions they can’t afford."

How long have the drug price negotiations occurred?

The backstory:

In 2024, the Centers for Medicare & Medicaid Services announced it had reached pricing deals with companies for 10 drugs in the first round of negotiations. According to the Associated Press, list prices under the new deals were lowered by hundreds — in some instances, thousands — of dollars for 30-day supplies of popular drugs used by people on Medicare. 

The Department of Health and Human Services announced in 2023 the 10 drugs covered under Medicare Part D selected for the first cycle of negotiations and included popular blood thinners Xarelto and Eliquis and diabetes drugs Jardiance and Januvia. 

When will the negotiated prices for the drugs take effect?

The Associated Press reported that the negotiated prices for the first 10 drugs on the list for lower Medicare prices won’t start until 2026. Prices for the 15 additional drugs announced Friday won't go into effect until 2027. According to the AP, some Medicare enrollees should see relief from drug prices in a new rule this year that caps annual out-of-pocket costs on prescription drugs to $2,000. Under the law, more drugs will be added to the negotiation process in coming years.

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