Biden administration announces 15 more drugs for price talks

US President Joe Biden’s administration on Friday announced a new list of 15 drugs for which it will negotiate lower prices with pharmaceutical companies.

The 2022 Inflation Reduction Act allows Medicare to negotiate the prices of certain drugs, and the costs of 10 key medicines were already cut in a first round of talks.

The aim is to reduce or eliminate the amount paid by beneficiaries of Medicare, a health coverage program available to Americans over the age of 65.

Pharmaceutical firms pushed back against the price negotiation initiative, but ultimately came on board as they said they had no choice due to the steep consequences for not participating.

Legal proceedings are still underway to block the application of the law, but others have already been rejected.

The negotiations on the 15 new medications will take place in 2025, with the resulting prices taking effect in 2027.

According to the US Department of Health and Human Services (HHS), between November 1, 2023 and October 31, 2024, “about 5.3 million people with Medicare Part D coverage used these drugs to treat a variety of conditions, such as cancer, type 2 diabetes, and asthma.”

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“These selected drugs accounted for about $41 billion in total gross covered prescription drug costs under Medicare Part D, or about 14 percent, during that time period,” HHS said in a statement.

The pharmaceutical companies have until February 28 to decide whether or not they will negotiate with the government, but if they do not, they face significant fines or the end of Medicare reimbursements for all of their medications.

“Last year we proved that negotiating for lower drug prices works. Now we plan to build on that record by negotiating for lower prices for 15 additional important drugs for seniors,” HHS Secretary Xavier Becerra said in a statement.

This is a “great way to close out the four-year term of the president,” he added on a conference call.

When asked about the direction the Donald Trump’s incoming administration might take with drug negotiations, officials said that the procedures provided for in the law were strictly regulated, without elaborating.