Medicare Negotiates Drug Prices to Help Seniors Afford Treatments

In a big step to make medications more affordable, the Biden administration recently revealed 15 prescription drugs that Medicare will negotiate prices for. Topping the list are drugs like Ozempic and Wegovy from Novo Nordisk. These drugs treat Type 2 diabetes and help with weight management, but their high costs have made them hard to access for many seniors. The new prices will start in 2027, but it's uncertain what changes might happen with the incoming president. This move is part of the Inflation Reduction Act, giving Medicare the power to directly talk prices with drug makers for the first time in its nearly 60-year history. Many seniors struggle with high drug costs, and this change aims to help them. About 5. 3 million people with Medicare used these drugs to treat conditions like asthma and cancer between November 2023 and October 2024. These drugs also accounted for about $41 billion, or 14%, of total Medicare prescription drug costs during that period. When combined with the first round of negotiations, these drugs represent 36% of all Medicare Part D prescription drug costs. The drugs have been on the market for at least seven years without generic competitors. Medicare has already negotiated prices for the first 10 drugs, expecting to save enrollees around $1. 5 billion in out-of-pocket costs in 2026 alone. The government also expects savings of around $6 billion for the Medicare program in 2026. The pharmaceutical industry has challenged this process legally, seeing it as a threat to their profits and innovation. Medicare covers around 66 million people in the U. S. , with about 50. 5 million in Part D plans. About 10% of seniors and 20% of those under 65 report having trouble affording their drugs. Patient advocacy groups like AARP support this move, hoping it will reduce drug prices and save money for both Medicare and its beneficiaries.