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September 01, 2023

Medicare Drug Negotiation Begins

On August 29, 2023, CMS announced the first ten drugs to undergo price negotiation with the Medicare program.  The Inflation Reduction Act of 2022 gave Medicare the authority to negotiate prices for expensive drugs that come from a single source and that do not have a generic or biosimilar alternative.  CMS selected ten drugs that are covered by Part D for the initial negotiation:

  • Eliquis, blood thinner
  • Xarelto, blood thinner
  • Januvia, for diabetes
  • Jardiance, for diabetes
  • Enbrel, for rheumatoid arthritis
  • Imbruvica, for blood cancers
  • Farxiga, for diabetes, heart failure, and chronic kidney disease
  • Entresto, for heart failure
  • Stelara, for psoriasis and Crohn’s disease
  • Fiasp and NovoLog, for diabetes

Negotiations will take place during the remainder of 2023 and 2024 for prices to go into effect in 2026.

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