Policy Analysis:

Trump Administration Executive Actions

HHS Announces Next 15 Drugs Subject to Medicare Price Negotiation

January 21, 2025
Evan Schweikert

The Department of Health and Human Services (HHS) on Jan. 17 announced the new slate of 15 drugs subject to negotiation for a maximum fair price under Medicare. If the agency and manufacturers reach an agreement, the negotiated prices will take effect Jan. 1, 2027. These 15 products join 10 previously selected drugs, for which negotiated prices will take effect in 2026.  

The drugs selected include weight-loss and diabetes drugs Ozempic and Wegovy, medications to treat asthma, psoriatic arthritis, and several that treat various cancers. The combined list of 25 drugs account for more than one-third of Medicare Part D spending on prescription drugs, HHS says.  

The 15 drugs are:  

  • Ozempic, Rybelsus, and Wegovy 
  • Trelegy Ellipta 
  • Xtandi 
  • Pomalyst 
  • Ibrance 
  • Ofev 
  • Linzess 
  • Calquence 
  • Austedo and Austedo XR 
  • Breo Ellipta 
  • Tradjenta 
  • Xifaxan 
  • Vraylar 
  • Janumet and Janumet XR 
  • Otezla 

Manufacturers now have until Feb. 28 to decide if they will participate in negotiation; if a manufacturer declines to participate, they face escalating fines — up to 95 percent of revenue for the specified drugs — or may choose to withdraw from Medicare and Medicaid entirely. If a manufacturer accepts participation, they will work with HHS in the coming months to determine a new maximum price that Medicare will pay for these products. 

Contact Director of Policy Rob Nelb, MPH, at rnelb@essentialhospitals.org or 202.585.0127 with questions. 

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