Medicare Price Negotiations: A New Chapter for High-Cost Drugs

The U.S. government targets 15 high-cost medications for Medicare price negotiations for 2027, under the Inflation Reduction Act. This includes Novo Nordisk's drugs like Ozempic and Wegovy. There are concerns about the policy's impact on innovation and its political implications with the incoming administration.

In a significant step under the Inflation Reduction Act, the U.S. government has announced a program to negotiate prices of 15 high-cost medications for 2027. This includes popular drugs like Novo Nordisk's Ozempic and Wegovy, which are widely used by Medicare patients. The initiative targets some of the costliest drugs within the program aimed at individuals aged 65 and above or those with disabilities.

The list also features drugs from pharmaceutical giants such as Pfizer, GSK, and Abbvie. While current President Biden supports this initiative, the incoming administration may seek to revise the selection. Ge Bai, a health policy expert, notes that the Trump administration could potentially modify the drug list through executive actions.

Pharmaceutical companies have expressed concerns, fearing that such negotiations might hinder innovations. As the industry continues to lobby for more lenient rules, all eyes are on how the new administration will navigate these changes amidst looming political and budgetary debates.

(With inputs from agencies.)