The U.S. Centers for Medicare and Medicaid Services (CMS) said on Wednesday that it would seek “greater transparency” in drug price negotiations under President Donald Trump’s administration. The statement follows criticism from the pharmaceutical industry regarding the program.
“As the second cycle begins under the Trump Administration, CMS is committed to incorporating lessons learned to date from the program and to considering opportunities to bring greater transparency in the Negotiation Program,” the agency said in a statement.
CMS also plans to provide opportunities for stakeholders to share specific ideas to improve the program.
Just before leaving office, the Biden administration released a list of 15 drugs set to undergo the price negotiation process next.
The selected drugs for the second cycle of negotiations are:
- Ozempic; Rybelsus; Wegovy (semaglutide)
- Trelegy Ellipta
- Xtandi
- Pomalyst
- Ibrance
- Ofev
- Linzess
- Calquence
- Austedo; Austedo XR
- Breo Ellipta
- Tradjenta
- Xifaxan
- Vraylar
- Janumet; Janumet XR
- Otezla
The negotiated prices for these medications will go into effect in 2027.
The Medicare drug price negotiation program was established under the Inflation Reduction Act, which Congress passed in 2022. This act allows CMS to negotiate the price for brand-name drugs, which account for most of Medicare’s prescription drug spending.
The first 10 drugs that went under negotiations last year accounted for $56.2 billion in total Medicare spending in 2023, according to the U.S. Department of Health and Human Services.
The negotiations resulted in price discounts ranging from 38% to 79%.
Merck’s diabetes drug Januvia saw the biggest drop. Its price fell 79% to $113 for a 30-day supply from a list price of $527. However, it is important to note that a drug’s list price doesn’t necessarily equal the actual price patients pay. Drug manufacturers typically offer rebates and discounts to patients and insurers, lowering the price of many medications.