Drugs, including Ozempic, are up for price negotiations

Novo Nordisk’s Ozempic and Wegovy are among the 15 drugs the Biden administration has put up for the next Medicare price negotiations.

The upcoming discussions will occur throughout 2025 and cover drugs for conditions including diabetes, obesity, asthma and cancer. Between November 1, 2023, and October 1, 2024, nearly 5.3 million people on Medicare used the drugs.

The 15 drugs combined cost the program $41 billion, 14% of total Medicare Part D spending.

The new prices are set to take effect in January 2027, with expected taxpayer savings of $6 billion. 

These negotiations target medications representing about a third of Medicare’s prescription drug spending. 

As drug companies negotiate, they must submit cost data. If they reject government offers, their drugs could be removed from Medicare Part D, cutting access to millions of patients.

However, the discussion, mandated by the Inflation Reduction Act, faces uncertainty as it is unclear if the incoming Trump administration will continue with the process.