Weight loss drugs top the list for price negotiations

Weight loss drugs such as Ozempic, Rybelsis and Wygovy have skyrocketed in popularity for treatment of Type 2 diabetes and weight loss. But these drugs carry a steep price tag. On Friday, the Biden administration announced that the trio of weight loss drugs top the list of prescription drugs selected for Medicare price negotiations.

The list, which includes 15 drugs, up from 10 last year, is the first step in a negotiation process between Medicare and drugmakers that is expected to take place over the coming months. The new negotiated prices won’t take effect until 2027.

The list of drugs up for negotiation include:

The drugs selected to undergo negotiations are:

• Ozempic; Rybelsus; Wegovy, for Type 2 diabetes and weight loss.
• Trelegy Ellipta, an asthma treatment.
• Xtandi, for prostate cancer.
• Pomalyst, a chemotherapy drug.
• Ibrance, a breast cancer drug.
• Ofev, for idiopathic pulmonary fibrosis.
• Linzess, a chronic constipation drug.
• Calquence, a cancer drug.
• Austedo; Austedo XR, for Huntington’s disease.
• Breo Ellipta, a COPD drug.
• Tradjenta, a diabetes drug.
• Xifaxan, for diarrhea and irritable bowel syndrome.
• Vraylar, an antipsychotic drug.
• Janumet; Janumet XR, diabetes drugs.
• Otezla, a psoriatic arthritis drug.

About 5.3 million people on Medicare used the drugs between Nov. 1, 2023, and Oct. 1, 2024, according to the Centers for Medicare and Medicaid Services.

Together, the 15 drugs selected accounted for $41 billion, or 14%, of total Medicare Part D spending. When combined with the first 10 drugs already negotiated by Medicare, they account for a third of all Part D spending, according to CMS. Medicare Part D covers prescription drugs that people take themselves, as opposed to those administered in a facility, such as chemotherapy.

"We have a chance to negotiate a better deal for the American people," outgoing Department of Health and Human Services Secretary Xavier Becerra said. "This is a big deal. Some folks have to cut their pills in half or skip a dose in their prescription so that they can make their prescription last longer."

Last year, Medicare reached agreements to lower prices on the 10 costliest drugs, including Eliquis, a blood thinner; Imbruvica, a blood cancer treatment; and NovoLog, a diabetes medication.

The new prices for those prescription medications are set to take effect in 2026.

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