Manufacturers of 10 drugs chosen for Medicare price negotiations agree to participate
Key takeaways:
- The manufacturers of the 10 drugs had until Oct. 1 to decide whether to participate.
- Negotiations will take place in 2023 and 2024, while the negotiated prices will take effect in 2026.
The manufacturers of the initial 10 drugs chosen for Medicare’s price negotiations have agreed to participate, the White House announced.
The drugs were first announced by HHS in August and accounted for $3.4 billion in out-of-pocket costs for an estimated 9 million Medicare enrollees in 2022, according to a White House press release.
The manufacturers had until Oct. 1 to decide on participation and Oct. 2 to submit manufacturer-specific data to CMS.
“They’re taking steps to participate in the negotiation program so we can give seniors the best possible deal,” President Joe Biden said in a video posted on X, formerly known as Twitter.
The negotiations will take place in 2023 and 2024 as part of a provision included in the Inflation Reduction Act, although new prices would not go into effect until 2026.
The first drugs selected for negotiation include:
- Eliquis (apixaban, Bristol Myers Squibb and Pfizer), used for prevention and treatment of blood clots;
- Enbrel (etanercept, Amgen), used for treatment of psoriatic arthritis, psoriasis and rheumatoid arthritis;
- Entresto (sacubitril/valsartan, Novartis), used for treatment of heart failure;
- Farxiga (dapagliflozin, AstraZeneca), used for treatment of diabetes, chronic kidney disease and heart failure;
- Imbruvica (ibrutinib, Janssen), used for treatment of blood cancers;
- Januvia (sitagliptin, Merck), used for treatment of diabetes;
- Jardiance (empagliflozin, Boehringer Ingelheim), used for treatment of heart failure and diabetes;
- Stelara (ustekinumab, Janssen), used for treatment of psoriasis, psoriatic arthritis, Crohn’s disease and ulcerative colitis;
- Xarelto (rivaroxaban, Janssen), used for prevention and treatment of blood clots and reduction of risk in patients with coronary or peripheral artery disease; and
- Insulin treatments including NovoLog, NovoLog FlexPen and NovoLog PenFill (all manufactured by novoMEDLINK), along with Fiasp FlexTouch and Fiasp PenFill (all manufactured by Novo Nordisk).
According to the press release, Medicare will negotiate prices for up to 60 drugs covered under Medicare Part D and Part B over the next 4 years, and up to an additional 20 drugs every year after.
“For many Americans, the cost of one drug is the difference between life and death, dignity and dependence, hope and fear,” Biden said. “That’s why we’ll continue to fight to lower health care costs.”
References:
- Biden-Harris administration takes major step forward in lowering health care costs; Announces manufacturers participating in drug price negotiation program. https://www.whitehouse.gov/briefing-room/statements-releases/2023/10/03/biden-harris-administration-takes-major-step-forward-in-lowering-health-care-costs-announces-manufacturers-participating-in-drug-price-negotiation-program/. Published Oct. 3, 2023. Accessed Oct. 3, 2023.
- Fact sheet: Biden-Harris administration announces first ten drugs selected for Medicare price negotiation. https://www.whitehouse.gov/briefing-room/statements-releases/2023/08/29/fact-sheet-biden-harris-administration-announces-first-ten-drugs-selected-for-medicare-price-negotiation/. Published Aug. 29, 2023. Accessed Oct. 3, 2023.
- President Biden (@POTUS). Oct. 3, 2023. X (Twitter).