Medicare Targets Ozempic, Wegovy for 2027 Price Negotiations

The Biden administration has announced the next 15 prescription drugs, including the widely used diabetes and weight loss medications Ozempic and Wegovy, that will undergo price negotiations as part of Medicare's efforts to reduce drug costs. This follows the initial round of negotiations, which is expected to save the government over $200 billion over a decade and includes drugs that account for a third of Medicare's prescription drug spending. The negotiated prices for the newly targeted drugs are set to take effect in 2027, with drug manufacturers facing a deadline to decide whether to participate or incur significant penalties. President Biden has touted this initiative as a major achievement of his administration, claiming earlier negotiations led to price reductions of 40% to 80% for some commonly used drugs. However, the program has faced criticism from industry groups and Republicans, who argue it could hinder innovation in the pharmaceutical sector. The outcome of these negotiations may also be influenced by potential changes in administration following the upcoming elections.