The Centers for Medicare and Medicaid Services (CMS) has selected 15 more drugs for Medicare price negotiation, announcing the selection two weeks ahead of schedule.
Administration officials did not share which drugs had been selected, only saying in a briefing that the 15 that had been chosen, combined with the 10 that have already been negotiated on, represent a third of Medicare Part D spending.
CMS had until Feb. 1 to announce the new batch of drugs chosen for negotiation. When asked if the new selection was announced early in anticipation of the incoming Trump administration, a senior administration official noted CMS had completed actions related to Medicare negotiations ahead of set deadlines in the past.
The agency will announce the 15 new drugs chosen for Medicare negotiation on Friday morning. The companies that manufacture these drugs will have until Feb. 28 to sign negotiation agreement.
Health and Human Services Secretary Xavier Becerra called the announcement a “great way to close out the four-year term of the president.”
“I need to remind people the President made a pretty direct promise more than four years ago, when he was campaigning […], he said he would lower prescription drug costs, and he delivered,” he added.
The Biden administration has long held Medicare negotiations as one of its key health care accomplishments. The first round of negotiations were completed last year, with officials saying the talks will save an estimated $6 billion in savings for Medicare.
Through negotiations, CMS got discounts on the first 10 drugs ranging from about 40 to 80 percent off the list prices. The lowered prices for the first 10 drugs will go into effect beginning in 2026. Because Medicare does not disclose the net price it pays for drugs, the true savings are unclear.
“Today, I’m proud to announce that my Administration has selected the next 15 drugs for Medicare drug price negotiation. The drugs treat conditions such as diabetes and cancer, and seniors across the country rely on them,” President Biden said in a statement.
“The Inflation Reduction Act put the country on a path to lower drug prices. I’m proud of my Administration’s implementation of this law to deliver lower prices for America’s seniors,” he added.
Many drugs covered by Medicare are exempt from negotiations, including those that have generic or biosimilar versions available; drugs less than seven years old; biological products less than 11 years old; and orphan drugs, which are used to treat rare diseases and are not expected to generate profit.
The drugs that are chosen represent the highest total Medicare Part B and D spending.
“The 15 drugs selected for the second round of negotiation account for about $41 billion of total Medicare prescription drug spending. When combined with the first round of negotiation, it is clear that the success of the Medicare drug negotiation program has been nothing short of remarkable,” CMS Administrator Chiquita Brooks-LaSure said.
Senior administration officials declined to speculate on how the Trump administration may change or pause the Medicare drug price negotiation program.
