Medicare Initiates Price Negotiations for 15 Drugs

The Biden administration has announced that Medicare will negotiate prices for 15 additional medications, including the widely used diabetes drug Ozempic and weight-loss drug Wegovy, as part of a program established by the Inflation Reduction Act. This initiative aims to reduce Medicare spending, which has been a significant concern for many voters, with a recent poll indicating that over half prioritize expanding drug negotiations. Pharmaceutical companies have until February 28 to decide on participating in these negotiations, which could lead to price reductions similar to those seen in the first round, where cuts ranged from 38% to 79%. The new negotiated prices are expected to take effect in 2027, amidst uncertainty regarding the program's future under a potential incoming Trump administration. Health officials stress the importance of securing favorable deals to save Medicare billions, especially as the demand for these high-cost drugs continues to rise. The announcement comes as the administration emphasizes its commitment to lowering prescription costs as a key achievement of its term.