Medicare Drug Price Negotiations Target Key Pharmaceuticals

Novo Nordisk's Ozempic and other major drugs are set for Medicare price negotiations in 2027, under the Inflation Reduction Act. These negotiations, involving some of the most costly drugs for Medicare, are controversial, with critics warning they could hinder pharmaceutical innovation.

The U.S. government has identified Novo Nordisk's Ozempic and Wegovy among 15 drugs targeted for Medicare price negotiations in 2027. This move is part of President Biden's Inflation Reduction Act, affecting some of the costliest medications for Medicare recipients aged 65 and older or with disabilities.

This round of negotiations follows last year's successful talks, which cut prices for ten popular drugs. Experts anticipate further discussions about potential changes under President-elect Trump's administration, though legal constraints might limit modifications.

Industry voices express skepticism regarding the negotiation program, warning it could stifle innovation. This comes as drug companies face mounting pressure amid demands for drug price cuts and expanded healthcare access.

(With inputs from agencies.)