Medicare to Negotiate Prices on 15 More Life-Saving Drugs

Millions of Americans could soon pay less for medications that treat everything from HIV to psoriasis, thanks to a new round of Medicare price negotiations announced this week.

The U.S. government selected 15 widely used drugs for price negotiations that will take effect in 2028. These medications accounted for $27 billion in spending last year and currently have no generic alternatives available.

Among the selected treatments is Biktarvy, Gilead Sciences' HIV medication that generated $13.4 billion in sales last year. Also on the list are Pfizer's arthritis drug Xeljanz, Eli Lilly's diabetes treatment Trulicity, and AbbVie's Botox.

This marks the third round of negotiations under the Inflation Reduction Act of 2022, which allowed Medicare to negotiate drug prices for the first time in the program's history. The law focuses on medications used by people aged 65 and older or those with disabilities.

The results so far look promising. Last year, Medicare announced it had negotiated prices for 15 drugs starting in 2027, securing a 36% discount compared to recent spending. That translates to roughly $8.5 billion in savings for the program.

The 2028 list includes both pharmacy medications and treatments administered in doctors' offices or hospitals. Novartis' psoriasis drug Cosentyx and breast cancer treatment Kisqali also made the cut.

The Ripple Effect

These negotiations don't just mean lower costs for the government. When Medicare secures better prices, those savings often flow directly to patients through lower copays and premiums.

The selected drugs treat conditions affecting millions of Americans. HIV medications like Biktarvy help people live full, healthy lives. Arthritis treatments restore mobility and reduce pain. Diabetes drugs prevent serious complications that can lead to hospitalization.

Healthcare analysts note that several of these medications will lose patent exclusivity soon anyway, suggesting the negotiations strike a reasonable balance. Markets responded positively to the news, with pharmaceutical company stocks rising after the announcement.

The drugs were chosen based on specific criteria: they must be at least seven to eleven years past FDA approval, have no generic or biosimilar alternatives available, and represent significant Medicare spending.

While pharmaceutical companies continue to express concerns about the policy, the first round of negotiated prices already went into effect this year without major disruptions. Patients are beginning to see the benefits at their pharmacy counters.

For the millions of Americans managing chronic conditions, this news offers real hope that their medications will become more affordable in the coming years.