Medicare Adds Ozempic, Wegovy to 15 Drugs for Price Negotiation Under Inflation Reduction Act

Jan 17, 2025, 02:03 PM

The U.S. government announced that 15 additional drugs have been selected for the second round of Medicare price negotiations under the Inflation Reduction Act, including Novo Nordisk's blockbuster diabetes and weight-loss medications Ozempic and Wegovy, which contain semaglutide. The negotiated prices are expected to take effect in 2027 and could save the government more than $200 billion over a decade. The announcement was made by the Centers for Medicare and Medicaid Services (CMS) two weeks ahead of schedule. Other drugs on the list include Trelegy Ellipta, an asthma treatment by GlaxoSmithKline, and cancer medications such as Xtandi for prostate cancer and Pomalyst for multiple myeloma. The 15 drugs represent a third of Medicare Part D spending. This move builds on last year's first round of negotiations, which delivered dramatic savings by reducing the prices of some commonly used drugs by about 40% to 80%, as the Biden administration continues its efforts to lower prescription drug costs for seniors.