CMS will not change the Biden administration's plan to negotiate prices for 15 previously named prescription drugs, and the agency's next potential leader says he will defend the program in court.
In January, CMS selected Ozempic, Rybelsus, Wegovy, Trelegy Ellipta, Xtandi, Pomalyst, Ibrance, Ofev, Linzess, Calquence, Austedo, Breo Ellipta, Tradjenta, Xifaxan, Vraylar, Janumet, and Otezla to be included in the second round of negotiations aimed at reducing drug costs for Medicare beneficiaries.
On March 14, CMS said it had signed agreements with manufacturers, who will now participate in meetings and roundtables throughout 2025 to negotiate maximum fair prices for the 15 drugs, with final agreements due by Nov. 1.
Mehmet Oz, MD, President Donald Trump's pick for CMS administrator, told the Senate Finance Committee March 14 he would defend the negotiation program in court.
"It's the law. I'm going to defend it and use it," he said, adding that it is one of multiple approaches he would pursue to lower drug costs.
The selected drugs account for approximately $41 billion in total spending under Medicare Part D between November 2023 and October 2024, or about 14% of Medicare Part D's prescription drug costs, according to CMS. The negotiated prices for the drugs will take effect in 2027.
The second round of negotiations builds on the success of the first cycle, which secured price reductions for 10 drugs, set to take effect in 2026. If the new prices had been applied in 2023, it is estimated they would have saved Medicare beneficiaries $6 billion.