CMS Announces Second Round of Drug Price Negotiations

In a continued effort to lower prescription drug costs, a key provision of the Inflation Reduction Act of 2022, the U.S. Centers for Medicare and Medicaid Services (CMS) has announced the selection of 15 drugs for the second cycle of price negotiations with pharmaceutical companies in 2025. The selected drugs are all covered under Medicare Part D and are used for the treatment of a range of common chronic conditions, including chronic lung disease (Ofev) and type 2 diabetes (Tradjenta; Janumet, Janumet XR; Ozempic, Rybelsus, Wegovy), as well as cancer (Xtandi; Calquence; Pomalyst; Ibrance). Other drugs on the list include Austedo, Austedo XR; Linzess; Breo Ellipta; Trelegy Ellipta; Otezla; Xifaxan and Vraylar. The new negotiated prices are expected to be implemented in 2027. Recall that last year, CMS also conducted its first price negotiations for 10 Medicare Part D covered drugs, and the prices will take effect in 2026. Read more about this at: https://www.cms.gov/newsroom/press-releases/hhs-announces-15-additional-drugs-selected-medicare-drug-price-negotiations-continued-effort-lower; https://www.kff.org/medicare/issue-brief/faqs-about-the-inflation-reduction-acts-medicare-drug-price-negotiation-program/