Second Round of Prescription Drugs Targeted for Price Reduction Through Medicare Negotiations

01.17.2025 /Press Release

Second Round of Prescription Drugs Targeted for Price Reduction Through Medicare Negotiations

WASHINGTON, DC - Today, the Biden administration announced the second set of drugs selected for Medicare price negotiation. The Inflation Reduction Act authorizes Centers for Medicare and Medicaid Services (CMS) to negotiate with pharmaceutical companies for lower drug prices to help millions of older Americans better afford the medications they need.

The Medicare Drug Negotiation Program has already been a success, as negotiations for the first ten drugs will result in discounts that range from 38 percent to 79 percent lower when in place in 2026. Today's announcement that 15 additional drugs will be negotiated for lower prices in 2027 is another important step forward for the program.

"The American people are pleading with political leaders to lower costs, including the inflated and irrational prices of prescription drugs. Having Medicare negotiated drug discounts is a win-win - saving people money at the pharmacy counter while also saving the government billions of dollars for every new group of drugs. Today's announcement sets the table for the next CMS Administrator to deliver savings for people instead of padding profits for big drug companies.

"If the Trump administration is serious about affordability, they will maintain the Inflation Reduction Act and their authority to ensure robust negotiation of prescription drug prices, and use it to maximize savings for these 15 drugs. Older Americans and people with disabilities who depend on Medicare have been waiting for this relief for far too long," said Anthony Wright, executive director of Families USA. "This new authority also underscores the need for the Senate to do its job in vetting nominees to lead these key health positions, to ensure that big drug companies are not on both sides of the bargaining table."

According to the HHS, approximately more than five million people covered by Medicare rely on these life-saving drugs, which treat diabetes, cancer, asthma, and many more chronic conditions. These drugs accounted for $40.7 billion-or about 14%-of total Part D gross covered prescription drug costs in 2023. Alarmingly, nine of these ten drugs saw list price increases between 2018 and 2023. Families USA will continue to engage in this process with the administration to ensure maximized savings for Medicare, older adults and people with disabilities that rely on it for their prescription drugs.