{"id":200435,"date":"2025-11-26T02:33:07","date_gmt":"2025-11-26T02:33:07","guid":{"rendered":"https:\/\/www.europesays.com\/ie\/200435\/"},"modified":"2025-11-26T02:33:07","modified_gmt":"2025-11-26T02:33:07","slug":"us-slashes-36-off-medicare-spending-on-15-high-priced-medicines","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ie\/200435\/","title":{"rendered":"US slashes 36% off Medicare spending on 15 high-priced medicines"},"content":{"rendered":"<ul data-testid=\"Summary\" class=\"summary-module__summary__QjADA\">\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">Medicare says negotiated prices for 15 drugs to cut spending by 36%<\/li>\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">New prices to take effect in 2027<\/li>\n<li data-testid=\"Body\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf summary-module__point__UgXPz\">Pharma industry opposes Medicare negotiations<\/li>\n<\/ul>\n<p>Nov 25 (Reuters) &#8211; The U.S. Medicare health plan said on Tuesday that newly negotiated prices for 15 of its costliest drugs will save 36% on those medications compared with recent annual spending, or about $8.5 billion in net covered prescription costs.<\/p>\n<p>The prices go into effect in 2027, including a monthly price of $274 for Novo Nordisk&#8217;s <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/markets\/companies\/NOVOb.CO\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">(NOVOb.CO), opens new tab<\/a> popular GLP-1 drug semaglutide, sold as Wegovy for weight loss and Ozempic for diabetes.<\/p>\n<p data-testid=\"promo-box\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf article-body-module__promo-box__hVl8h\"> Sign up  <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/business\/healthcare-pharmaceuticals\/us-negotiated-medicare-prices-15-more-drugs-test-cost-savings-promise-2025-11-25\/undefined?location=article-paragraph&amp;redirectUrl=%2Fbusiness%2Fhealthcare-pharmaceuticals%2Fus-negotiated-medicare-prices-15-more-drugs-test-cost-savings-promise-2025-11-25%2F\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">here.<\/a><\/p>\n<p>Medicare&#8217;s recent net <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.jmcp.org\/doi\/10.18553\/jmcp.2025.25199\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">price for Ozempic, opens new tab<\/a> was $428 a month, according to an analysis published in the Journal of Managed Care and Specialty Pharmacy. Medicare put the drug&#8217;s list price, before confidential rebates and discounts, at $959 a month.<\/p>\n<p>Based on such nondiscounted list prices, Medicare said savings on the 15 drugs ranged from 38% to 85%.<\/p>\n<p>&#8220;They were gonna go to the table and try and push on those prices, and that&#8217;s what they did,&#8221; said William Padula, professor of pharmaceutical and health economics at the University of Southern California.<\/p>\n<p>AstraZeneca\u2019s <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/markets\/companies\/AZN.L\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">(AZN.L), opens new tab<\/a> leukemia drug Calquence, Boehringer\u2019s lung treatment Ofev and Pfizer\u2019s <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/markets\/companies\/PFE.N\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">(PFE.N), opens new tab<\/a> breast cancer drug Ibrance took the biggest hits from this round of Medicare negotiations, each slashed by over $4,000 from estimated net prices.<\/p>\n<p>The annual price negotiations were established under President Joe Biden&#8217;s signature Inflation Reduction Act (IRA) of 2022. Previously, Medicare was barred by law from negotiating with drugmakers.<\/p>\n<p>SAVINGS OUTPACE PREVIOUS YEAR&#8217;S<\/p>\n<p>The projected 2027 savings of 36% is better than the 22% savings of net spending &#8211; according to an estimate from Goldman Sachs &#8211; that Medicare achieved with last year&#8217;s first round of price negotiations for 10 different drugs.<\/p>\n<p>&#8220;They are getting more efficient with their methodology,&#8221; but this latest batch of newer products likely had &#8220;more wiggle room&#8221; on price, Padula said.<\/p>\n<p>Additional drugs up for negotiation this year included GSK&#8217;s <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/markets\/companies\/GSK.L\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">(GSK.L), opens new tab<\/a> asthma and COPD inhaler Trelegy Ellipta, which will have a price of $175 versus its list price of $654. AbbVie&#8217;s <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/markets\/companies\/ABBV.N\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">(ABBV.N), opens new tab<\/a> irritable bowel syndrome medicine Linzess has a new price of $136, down from $539.<\/p>\n<p>Analysts said they will also be comparing the new prices to prices negotiated by other high-income countries, a concept President Donald Trump has fought for, which is sometimes referred to as most-favored-nation pricing, or MFN.<\/p>\n<p>The pharmaceutical industry has fought the efforts. &#8220;Whether it is the IRA or MFN, government price setting for medicines is the wrong policy for America,&#8221; said Alex Schriver, spokesperson of industry body PhRMA.<\/p>\n<p>The graphic shows various prices for the 15 top-selling medicines selected for 2027 Medicare drug price negotiations, including U.S. list and net prices and average G7 prices.<\/p>\n<p>Medicare covers more than 67 million people aged 65 and over and those with disabilities.<\/p>\n<p>&#8220;These prices are going to come down below the existing net prices. There will be some real savings,&#8221; said Sean Sullivan, professor of pharmacy at the University of Washington.<\/p>\n<p>&#8220;All of the other payers can see them. What is going to stop them from asking manufacturers for that same price?&#8221; he said.<\/p>\n<p>PRICES STILL HIGHER THAN IN OTHER WEALTHY NATIONS<\/p>\n<p>The Medicare agency unveiled last year maximum new prices for the first 10 high-cost medicines negotiated under the IRA to take effect in 2026.<\/p>\n<p>For those drugs, including medicines such as the Pfizer and Bristol Myers Squibb <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/markets\/companies\/BMY.N\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">(BMY.N), opens new tab<\/a> blood thinner Eliquis and Amgen&#8217;s <a data-testid=\"Link\" target=\"_blank\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/markets\/companies\/AMGN.O\" rel=\"noopener nofollow\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC link-module__with-icon__qlg76\">(AMGN.O), opens new tab<\/a> arthritis drug Enbrel, the new prices were still on average <a data-testid=\"Link\" referrerpolicy=\"no-referrer-when-downgrade\" href=\"https:\/\/www.reuters.com\/world\/us\/us-will-still-pay-least-twice-much-after-negotiating-drug-prices-2024-09-03\/\" class=\"text-module__text__0GDob text-module__inherit-color__PhuPF text-module__inherit-font__1P1hv text-module__inherit-size__EyiQW link-module__link__INqxZ link-module__underline_default__-okuC\" rel=\"nofollow noopener\" target=\"_blank\">more than double<\/a>, and in some cases five times, what drugmakers had agreed to in four other high-income countries.<\/p>\n<p>Under the IRA, Medicare is required to consider a number of factors for pricing, including manufacturer data and availability of alternative treatments. The law does not include a review of international prices in the process.<\/p>\n<p>Many other countries have long had universal prescription drug coverage that relies on centralized price negotiations with manufacturers.<\/p>\n<p>The Trump administration has since outlined what it considers most-favored-nation pricing terms: the lowest price in any country that is part of the Organisation for Economic Co-operation and Development with a gross domestic product per capita of at least 60% of U.S. GDP per capita.<\/p>\n<p>Under a separate pilot program, Medicare has proposed a smaller \u201ccountry basket,\u201d which includes six G-7 countries &#8211; the UK, France, Germany, Italy, Canada and Japan &#8211; plus Denmark and Switzerland. The benchmark used to calculate the MFN price would be the second-lowest price within that basket of countries, adjusted by GDP per capita.<\/p>\n<p>Medicare&#8217;s next round of drug price talks is expected to include 15 additional prescription and hospital-administered medicines and begin in February.<\/p>\n<p data-testid=\"SignOff\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__extra_small__8Buss body-module__full_width__kCIGb body-module__extra_small_body__Bfz20 sign-off-module__text__LQAMP\">Reporting by Patrick Wingrove in New York and Deena Beasley in Los Angeles; Additional reporting by Michael Erman in New York; Editing by Bill Berkrot, Edmund Klamann and Muralikumar Anantharaman<\/p>\n<p data-testid=\"Body\" dir=\"ltr\" class=\"text-module__text__0GDob text-module__dark-grey__UFC18 text-module__regular__qJJtA text-module__small__sph8i body-module__base__o--Cl body-module__small_body__gOmDf 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