Medicare Price Negotiation Program: Updates for 2027
On Friday, January 17, the Biden Administration released its list of 15 drugs which include GLP-1 drugs Ozempic, Wegovy and Rybelsus, for the second round of drug price negotiations for 2027 as part of the Inflation Reduction Act (IRA).
Highlights include:
- Drug manufacturers will have until February 28, 2025, to opt in to, or out of, negotiations with the federal government.
- The new 15 drugs, plus the existing agreed-upon 10 drugs (effective January 1, 2026), account for more than a third of seniors’ drug spending.
- The first 10 drugs focus on diabetes, heart disease, rheumatoid arthritis, and cancer.
- The new list prices for the 10 drugs reflect 39%–79% discounts compared to their former prices.
- Program deadlines are typically statutory in nature, however, any possible future impact of the new administration is unknown at this time.
- Most Group members have fixed copays, so they may not see a reduction in copay unless they have a percentage copay. However, lowering drug costs overall would help contribute positively to actuarial pricing models.
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About the Author
Sheela Andrews, Pharm D.
Chief Product Officer
As Chief Product Officer, Sheela’s primary focus is to strengthen and build out the current Medicare products we offer while focused on the strategic direction of the organization. She is responsible for owning and overseeing the strategy, planning, development, and implementation of all of Retiree First’s Medicare products, carrier relationships and collaboration, strengthening compliance, data integration improvements, and product service enhancements.