WASHINGTON, D.C. — In the final days of the Biden-Harris Administration, the U.S. Department of Health and Human Services (HHS) last week announced 15 additional drugs selected for Medicare Part D price negotiations under the Inflation Reduction Act. This latest effort underscores the administration’s commitment to reducing prescription drug costs for millions of Americans.
The selected medications, including widely used treatments like Ozempic and Xtandi, represented $41 billion in total gross covered prescription costs between November 2023 and October 2024. Price negotiations with drug manufacturers will take place in 2025, with the new rates taking effect in 2027. Combined with the first round of negotiations, these actions encompass over a third of total prescription costs under Medicare Part D.
“Last year we proved that negotiating for lower drug prices works. Now we plan to build on that record by negotiating for lower prices for 15 additional important drugs for seniors,” said HHS Secretary Xavier Becerra. “This announcement is pivotal – the Inflation Reduction Act is lowering prices for people on Medicare. HHS will continue negotiating in the best interest of people with Medicare to have access to innovative, life-saving treatments at lower costs.”
The Inflation Reduction Act granted Medicare the historic authority to negotiate drug prices, targeting affordability challenges faced by seniors and individuals with disabilities. The program’s first cycle is expected to save $6 billion annually beginning in 2026, with price reductions ranging from 38% to 79% for selected drugs.
“The Biden-Harris Administration continues to make history by announcing the latest round of drugs selected for the Medicare Drug Price Negotiation Program, with the goal of improving access to some of the costliest drugs while saving the American people billions of dollars,” said CMS Administrator Chiquita Brooks-LaSure. “Improving prescription drug affordability for Medicare enrollees is the core of the Inflation Reduction Act, and the next cycle of negotiations will continue to strengthen Medicare for generations to come.”
These latest actions also coincide with future Medicare improvements, including a $2,000 out-of-pocket maximum for Part D enrollees in 2025. HHS projects this cap will save 11 million beneficiaries an average of $600 each, with even greater savings for those without financial assistance. The announcement reflects the administration’s focus on bolstering health care affordability and access in its final term.
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