Medicare and Drug Pricing

The Trump administration has named 15 additional drugs — including Type 2 diabetes medicine Trulicity, HIV treatment Biktarvy and Botox when used for covered medical conditions — for Medicare’s next round of government‑run price negotiations under the 2022 Inflation Reduction Act. CMS Administrator Dr. Mehmet Oz said Tuesday the picks, which include both Part D retail prescriptions and Part B doctor‑administered drugs, account for about 6% of all Medicare drug spending and were used by roughly 1.8 million enrollees last year, with negotiated prices scheduled to take effect in 2028. The list brings the total number of negotiated drugs to 40 after two earlier rounds that covered 25 high‑spend medicines, including GLP‑1 blockbusters Ozempic, Rybelsus and Wegovy, and CMS will also reopen talks on Tradjenta, a diabetes drug previously negotiated. AARP praised the announcement as a 'significant step forward' for older Americans, while PhRMA condemned the underlying law as government 'price setting' and urged Congress to target insurers and pharmacy benefit managers instead. The negotiations are being closely watched by drugmakers, seniors’ groups and fiscal hawks because they directly affect future Medicare outlays and could influence list‑price and launch‑price strategies across the pharmaceutical industry.