After months of failed litigation from drugmakers, CMS released negotiated list prices for 10 of the country's most expensive drugs.
The Inflation Reduction Act, signed into law in August 2022, granted CMS authority to negotiate the price of drugs with no generic or biosimilar competition. Pharmaceutical companies have filed numerous lawsuits to block the law, to no success.
The negotiated prices, announced Aug. 15, would have saved Medicare about $6 billion for more than 9 million people who use these medications. Compared with 2023 list prices, the negotiated prices offer savings between 38% and 79%.
After the list was published, Novartis and Bristol Myers Squibb both said the negotiated prices do not reflect the value of their medications.
The negotiated prices are for a 30-day supply, and the new prices will take effect Jan. 1, 2026.
1. Januvia, a Type 2 diabetes drug from Merck:
List price in 2023: $527
Negotiated price: $113
Part D cost from 2023: $4.09 billion
Discount: 79%
2. Fiasp, Fiasp FlexTouch, Fiasp PenFill, NovoLog, NovoLog FlexPen, and NovoLog PenFill; Type 2 diabetes drugs from Novo Nordisk:
List price in 2023: $495
Negotiated price: $119
Discount: 76%
Part D cost from 2023: $2.61 billion
3. Farxiga, a medication for Type 2 diabetes, heart failure and chronic kidney disease from AstraZeneca:
List price in 2023: $556
Negotiated price: $178
Discount: 68%
Part D cost from 2023: $4.34 billion
4. Enbrel, a therapy for rheumatoid arthritis, psoriasis and psoriatic arthritis from Immunex:
List price in 2023: $7,106
Negotiated price: $2,355
Discount: 67%
Part D cost from 2023: $2.95 billion
5. Jardiance, a Type 2 diabetes and heart failure drug from Boehringer Ingelheim:
List price in 2023: $573
Negotiated price: $197
Discount: 66%
Part D cost from 2023: $8.84 billion
6. Stelara, a drug for psoriasis, psoriatic arthritis, Crohn's disease and ulcerative colitis from Janssen:
List price in 2023: $13,836
Negotiated price: $4,695
Discount: 66%
Part D cost from 2023: $2.99 billion
7. Xarelto, a blood clot preventive drug and treatment, and a medication for coronary and peripheral artery disease from Janssen:
List price in 2023: $517
Negotiated price: $197
Discount: 62%
Part D cost from 2023: $6.31 billion
8. Eliquis, a preventive drug and treatment for blood clots from Bristol Myers Squibb:
List price in 2023: $521
Negotiated price: $231
Discount: 56%
Part D cost from 2023: $18.28 billion
9. Entresto, a heart failure drug from Novartis:
List price in 2023: $628
Negotiated price: $295
Discount: 53%
Part D cost from 2023: $3.43 billion
10. Imbruvica, a blood cancer treatment from Janssen:
List price in 2023: $14,934
Negotiated price: $9,319
Discount: 38%
Part D cost from 2023: $2.37 billion
CMS will have negotiation powers for 15 Part D drugs for 2027, 15 more Part B or D drugs for 2028 and 20 more Part B or D drugs for each year after that.