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But how much consumers will ultimately save depends on many factors, including the incoming Trump administration’s approach to the negotiation process and the type of Medicare drug coverage an enrollee has. Those not eligible for Medicare will not benefit directly.

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Best Stocks for Tax Efficient Investments Expert Endorsed Trading Techniques ✌️【Investment Expert】✌️ Expert market predictions with real-time global market, futures, metals, and energy data to help you stay in tune with market trends. Medicare spent $14.4 billion on Ozempic and Wegovy, as well as their sister medication Rybelsus, between November 2023 and October 2024. The medications, manufactured by Novo Nordisk and used to treat Type 2 diabetes and obesity, were used by nearly 2.3 million enrollees during that period. Wegovy has also been approved to treat cardiovascular disease.

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“Even as our IRA lawsuit progresses, we remain committed to working with policymakers to advance solutions to ensure access and affordability for all patients,” the company said. “That is why we are deeply concerned about the price-setting process, which could negatively impact patients’ ability to access their medicines and threatens to stifle future scientific development of life-changing medicines for chronic diseases in which there is a real unmet need.”

Best Stocks for Tax Efficient Investments Expert Endorsed Trading Techniques ✌️【Investment Expert】✌️ Real-time global market indices and futures data to help you capture market opportunities and achieve stable growth. The drugs selected for the controversial negotiation program, which was authorized by the 2022 Inflation Reduction Act, include the most expensive medicines taken by Medicare enrollees. In total, Medicare spent about $41 billion on the 15 second-round medications, prior to rebates and discounts.

“These 15 drugs, together with the 10 drugs that Medicare already negotiated, represent about a third of Medicare Part D spending on prescription drugs, which means the lower prices my Inflation Reduction Act is delivering will put money back in seniors’ pockets across the country,” President Joe Biden said in a statement.

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“It lets us go after the biggest cost drivers in the prescription drug field for the Medicare program,” Becerra said.

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“There may be some different people in the room representing Medicare from the Trump administration,” said Juliette Cubanski, deputy director of the Program on Medicare Policy at KFF, a nonprofit health policy research group. “To me, that raises the question of whether the tenor of the negotiation between Medicare and manufacturers will be different and whether the incoming administration may be a bit friendlier to the manufacturers in the negotiation process in terms of how hard they negotiate lower prices.”

Best Stocks for Tax Efficient Investments Expert Endorsed Trading Techniques ✌️【Investment Expert】✌️ Free real-time global stock and futures trend data to help you analyze market movements and make fast investment decisions. Already drugmakers are pushing Trump to make changes to the program. Eli Lilly’s CEO Dave Ricks toldBloomberg Newsearlier this week that manufacturers will ask the incoming administration to pause the negotiations to “fix” the Inflation Reduction Act before advancing the next round of discussions. Eli Lilly’s GLP-1 drugs Mounjaro and Zepbound are expected to become subject to negotiations in coming years.

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Drug makers and their allies have sued in various federal courts, arguing that the program is unconstitutional in several ways. Also, they contend that the way the administration has carried out the law doesn’t comply with what Congress enacted in the Inflation Reduction Act.

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Ozempic, which the US Food and Drug Administration has approved to treat diabetes, and Wegovy, which is approved for weight loss and the prevention of heart attacks and strokes, are wildly popular. But the high costs of the semaglutide drugs put them out of reach for many people seeking to shed pounds, since fewer insurers cover the medications to treat obesity alone.

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Best Stocks for Tax Efficient Investments Expert Endorsed Trading Techniques ✌️【Investment Expert】✌️ Free break-even services to create a customized investment plan, helping you recover quickly and achieve growth. Those not enrolled in Medicare will not benefit directly from the negotiations, since the discounts apply only to the federal program. However, the selection of Ozempic and Wegovy for the second round of bargaining could prompt insurers in the commercial market to push for better deals for their policyholders.

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But it will be up to the Trump administration to decide whether to finalize the coverage expansion. Kennedy has been opposed to using GLP-1 drugs for weight loss, though he has recentlysoftened his view.

For most Americans, the price they pay for medications depends on their health insurance. However, they may have to pay the list price if they have not yet hit their annual deductible or are uninsured. Novo Nordisk provides hefty discounts that can reduce certain patients’ out-of-pocket costs.

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“For too long, big drug companies have padded their profits by setting outrageous prices at the expense of American lives, forcing seniors to skip prescriptions they can’t afford,” Nancy LeaMond, AARP’s chief advocacy and engagement officer, said in a statement. “The first round of Medicare drug price negotiation made it clear that this process will reduce the prices of these important products and create billions of dollars in savings for Medicare and its beneficiaries.”

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