September 22, 2024

HHS lists first 10 drugs subject to Medicare price negotiation

Medicare #Medicare

Other drugs on the list include Jardiance, a diabetes drug manufactured by Eli Lilly and Boehringer Ingelheim, and Xarelto, a drug from Janssen Pharmaceuticals that prevents blood clots. 

In total, the 10 drugs accounted for 20 percent of Part D spending between June 1, 2022 and May 31, 2023, amounting to about $50.5 billion, according to HHS. The other drugs selected treat heart failure, rheumatoid arthritis, blood cancer and diabetes manufactured by companies like Merck & Co. Inc., AstraZeneca PLC, Novartis AG, Amgen Inc. and AbbVie Inc. 

The other drugs are Januvia, Farxiga and Fiasp products, used to treat diabetes; Entresto, used to treat heart failure; Enbrel and Stelara, which treat psoriasis; and Imbruvica, which treats blood cancers. 

CMS will submit initial offers to the drug companies Feb. 1. Manufacturers will then have one month to accept the offer or propose a counteroffer. 

The negotiation period ends Aug. 1, 2024  and negotiated prices will be announced by CMS on Sept. 1, 2024. 

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