The escalating costs in health care are a pressing concern, with expenses continually surpassing...
White House Announces First 10 Drugs Subject to Medicare Price Negotiation
The Medicare Drug Price Negotiation Program is the Biden administration’s latest effort to combat rising health care costs. Under the Inflation Reduction Act, the Medicare Drug Price Negotiation Program allows the federal government to negotiate directly with the drug manufacturers to improve access to some of the most expensive brand-name drugs.
Many Medicare Part D enrollees depend on medications to treat life-threatening conditions. In fact, more than 60% of the 65 million people on Medicare take prescription medication, and 25% take at least four prescriptions a day, according to the Kaiser Family Foundation survey.
The following drugs are the first ones subject to these price negotiations:
| Medication | Treatment |
| Eliquis | blood clot medication |
| Jardiance | diabetes medication & treats heart failure |
| Xarelto | risk reduction for people with coronary or peripheral artery disease |
| Januvia | diabetes treatment |
| Farxiga | treating diabetes, heart failure, and chronic kidney disease |
| Entresto | heart failure treatment |
| Enbrel | treatment for rheumatoid arthritis, psoriasis, and psoriatic arthritis |
| Imbuvica | blood cancer treatment |
| Stelara | treatment for Crohn’s disease and ulcerative colitis |
| Fiasp/Novolog | diabetes treatment |
The 10 drugs listed above are a main contributor to the highest costs in total spending in Medicare Part D. Medicare enrollees taking these drugs paid a collective $3.4 billion in out-of-pocket costs in 2022 to obtain them.
What’s next?
The first round of Medicare Part D drug negotiations will begin this year, with the new prices effective in 2026. Over the next four years, Medicare plans to negotiate prices for up to 60 Part D and Part B drugs – and up to an additional 20 drugs every year after that.
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