Medicare negotiations underway to lower prices for next batch of drugs

Medicare has started value negotiations for 15 medicines, including nan glucosuria supplier Ozempic. Mario Tama/Getty Images hide caption

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Mario Tama/Getty Images

As President Trump touts his ain executive orders to little supplier prices, nan Medicare supplier value negotiations begun during nan Biden management are continuing down nan scenes.

Two companies – Novo Nordisk and Amgen – confirmed to NPR that they had received opening value offers from nan government, kicking disconnected bargaining that could past done October. The Department of Health and Human Services did not respond to a petition for remark connected nan position of negotiations.

Medicare is negotiating nan prices of 15 drugs, including Novo Nordisk's Ozempic. The authorities has until Nov. 30 to denote nan agreed-upon Medicare prices. The little prices would spell into effect successful January 2027.

"It's a train that's benignant of moving on nan tracks successful nan background," says Ben Rome, a expert and wellness argumentation interrogator astatine Harvard Medical School. "And it seems for illustration nan Trump management has fixed nan greenish ray to benignant of proceed that process."

Medicare supplier value speech is still comparatively new. Until nan 2022 transition of nan Inflation Reduction Act, Medicare portion D, which covers more than 50 cardinal seniors, didn't person nan authority to discuss supplier prices. This is nan 2nd information of yearly bargaining.

"Unless nan Trump management wants to benignant of wholly disregard nan directives of Congress, past this process will continue," Rome says.

The first batch of 10 narcotics was negotiated past twelvemonth and announced successful August pinch value cuts ranging from 79% for Type 2 glucosuria supplier Januvia to 38% for crab supplier Imbruvica. The little prices for those narcotics are expected to return effect successful January 2026.

Neither Novo Nordisk nor Amgen, whose psoriasis and arthritis supplier Otezla is up for negotiation, would remark connected nan bargaining process different than to corroborate that they had received opening offers.

On May 12, nan Centers for Medicare and Medicaid Services issued draught guidance for nan 3rd information of negotiations, which is slated to statesman successful early 2026. Rome says this action is simply a clear motion "the Trump management plans to proceed this program," moreover though it began nether nan Biden administration.

President Trump has touted his ain supplier value initiatives, including an executive bid connected astir favored federation supplier pricing, which would activity to little U.S. supplier prices and unit different countries to salary much for their drugs. However, nan specifications of really this would activity are unclear.

Project 2025, a blueprint for changing nan national government by nan blimpish Heritage Foundation that Trump has echoed successful galore of his actions, says Medicare supplier value speech "should beryllium repealed." Until that tin hap "an Administration that is required to instrumentality it must do truthful successful a measurement that is prudent pinch its authority, minimizing nan harmful effects of nan law's policies and avoiding moreover worse unintended consequences," it says.