Biden chooses semaglutide for next round of Medicare price negotiations—Trump gets final say
The Biden administration has announced the next 15 drugs chosen for Medicare price negotiations as part of the Inflation Reduction Act. The list includes semaglutide, one of the most popular and well-known drugs of the last decade, and a variety of other pharmaceutical treatments prescribed for cancer, chronic obstructive pulmonary disease and other serious health conditions.
“These 15 drugs, together with the 10 drugs that Medicare already negotiated, represent about a third of Medicare Part D spending on prescription drugs, which means the lower prices my Inflation Reduction Act is delivering will put money back in seniors’ pockets across the country,” President Joe Biden said in a White House statement. “My administration completed the first round of price negotiation last year and delivered dramatic savings, slashing the price of some of the most commonly used drugs in Medicare by about 40 to 80%. The Inflation Reduction Act put the country on a path to lower drug prices.”
The announcement represents one of Biden's final official acts; it came just days before President-elect Donald Trump is scheduled to be sworn into office. Any final pricing decisions will take place when Trump is in the White House, and it is unclear at this stage how the Trump administration will handle Medicare drug price negotiations.
A closer look at the drugs chosen for Medicare price negotiations
The inclusion of semaglutide is perhaps the biggest takeaway from the announcement. Semaglutide is a GLP-1 receptor agonist being sold by Novo Nordisk under the brand names Wegovy, Ozempic and Rybelsus. GLP-1 receptor agonists were originally developed to treat diabetes, but they are being used more and more to help obese and overweight patients lose weight. In addition, semaglutide has specifically been linked to consistent health benefits for heart failure patients and patients undergoing heart bypass surgery.
Other diabetes medications were also included in the White House announcement. Tradjenta is a linagliptin oral medication sold by Boehringer Ingelheim, and Janumet and Janumet XR are combinations of two different drugs, sitagliptin and metformin, sold by Merck.
The full list of chosen drugs is:
- Ozempic/Rybelsus/Wegovy (semaglutide)
- Trelegy Ellipta (fluticasone furoate, umeclidinium and vilanterol)
- Xtandi (enzalutamide)
- Pomalyst (pomalidomide)
- Ibrance (palbociclib)
- Ofev (nintedanib)
- Linzess (linaclotide)
- Calquence (acalabrutinib)
- Austedo/Austedo XR (deutetrabenazine)
- Breo Ellipta (fluticasone furoate, vilanterol)
- Tradjenta (linagliptin)
- Xifaxan (rifaximin)
- Vraylar (cariprazine)
- Janumet; Janumet XR (sitagliptin, metformin)
- Otezla (apremilast)
Click here for more information from CMS.
Reviewing the first round of Medicare price negotiations
Back in August 2024, the White House announced lower prices for the first drugs chosen for Medicare price negotiations. The Medicare price for Eliquis (apixaban) was reduced by 56%, for example, while the price for Jardiance (empagliflozin) was reduced by 66%.
“More drugs will be selected each year as part of Medicare’s drug price negotiation program,” the White House said at the time. “Medicare will select up to 15 additional drugs covered under Part D for negotiation in 2025, up to an additional 15 Part B and D drugs in 2026, and up to 20 drugs every year after that.”
Michael has more than 18 years of experience as a professional writer and editor. He has written at length about cardiology, radiology, artificial intelligence and other key healthcare topics.