WASHINGTON, USA – The Biden administration on Friday, January 17, 2025, unveiled a new list of 15 prescription drugs selected for Medicare price negotiations, expanding on last year’s initial list of 10 drugs.
Among the high-profile additions is Ozempic, a diabetes drug also popular for weight loss, which has sparked public outcry over its steep price.
The negotiations, mandated by the Inflation Reduction Act of 2022, represent a significant effort to lower the cost of medications for millions of Americans.
However, the programme’s future remains uncertain as President-elect Donald Trump’s administration has not indicated whether it will continue to support the initiative.

A High-Stakes Negotiation
The selected drugs accounted for $41 billion—or 14%—of Medicare Part D spending between November 2023 and October 2024, according to the Centers for Medicare and Medicaid Services (CMS).
Combined with the first 10 drugs negotiated last year, these medications represent one-third of all Part D spending.
“This is a big deal,” outgoing Department of Health and Human Services Secretary Xavier Becerra said.
“Some folks have to cut their pills in half or skip doses so that they can make their prescription last longer. We have a chance to negotiate a better deal for the American people.”
The newly selected drugs include:
- Ozempic, Rybelsus, Wegovy: For Type 2 diabetes and weight loss.
- Trelegy Ellipta: An asthma treatment.
- Xtandi: For prostate cancer.
- Pomalyst: A chemotherapy drug.
- Ibrance: A breast cancer drug.
- Ofev: For idiopathic pulmonary fibrosis.
- Linzess: For chronic constipation.
- Calquence: A cancer drug.
- Austedo and Austedo XR: For Huntington’s disease.
- Breo Ellipta: For chronic obstructive pulmonary disease (COPD).
- Tradjenta: A diabetes drug.
- Xifaxan: For diarrhea and irritable bowel syndrome.
- Vraylar: An antipsychotic drug.
- Janumet and Janumet XR: Diabetes drugs.
- Otezla: For psoriatic arthritis.
Impact on Patients and Medicare
Approximately 5.3 million Medicare beneficiaries used the selected drugs last year, and experts predict significant savings could result from these negotiations.
Medicare beneficiaries, who often face high out-of-pocket costs, stand to benefit directly.
The addition of Ozempic and similar drugs is especially notable.
With Medicare poised to cover these medications for broader FDA-approved uses, such as reducing heart disease risk, their demand—and cost—could rise dramatically.
Currently, Medicare is barred from covering these drugs specifically for weight loss, but that could change in the future.
Stacie Dusetzina, a health policy professor at Vanderbilt University, said the inclusion of Ozempic is “a big deal” due to its potential budget implications.
“This could result in premium increases if the number of eligible beneficiaries started using these products for weight loss since the products need to be used chronically,” she said.
Challenges Ahead
The pharmaceutical industry remains fiercely opposed to the programme, citing concerns over innovation and profitability.
Companies refusing to participate in negotiations face tax penalties unless they pull their drugs from Medicare entirely, which would cut them off from a substantial portion of the market.
Novo Nordisk, the maker of Ozempic and Wegovy, reiterated its opposition to price negotiations in a statement but expressed willingness to collaborate with the incoming administration.
Despite the industry’s resistance, public support for expanding price negotiations remains high.
A recent survey by the Kaiser Family Foundation (KFF) found that over half of Americans consider it a “top priority” to increase the number of drugs eligible for negotiation.
The Road Ahead
The new prices for these drugs are not expected to take effect until 2027, but the negotiations underscore the Biden administration’s efforts to tackle the high cost of prescription drugs.
Last year, Medicare reached agreements to lower prices on 10 of its costliest drugs, with new pricing set to begin in 2026.
However, the program’s continuation is uncertain as Trump prepares to take office.
The outgoing administration has urged the incoming leadership to support the initiative, citing its potential to save Medicare billions and ease the financial burden on millions of Americans.
“This could fundamentally reshape how we approach prescription drug costs in this country,” Juliette Cubanski, deputy director of the Medicare policy program at KFF, said.
“Driving a hard bargain at the negotiating table could potentially save Medicare billions of dollars in the coming years.”