Trump administration aims for 'greater transparency' in drug price negotiations

The US government said on Wednesday it will aim for “greater transparency” in Medicare drug price negotiations under President Donald Trump’s administration following criticism from the pharmaceutical industry for the Biden-era law.

The statement was the first by the new government since the outgoing administration earlier this month released a list of 15 drugs that are set to undergo the price negotiation process. At the time, it was unclear if Trump was planning to make any changes to the program.

The price negotiation process was established under former President Joe Biden’s signature Inflation Reduction Act in 2022, a law that pharmaceutical companies have sought to revisit with the new administration.

The Centers for Medicare and Medicaid Services will give opportunities for “stakeholders to provide specific ideas” that can improve the negotiations, the agency, which oversees the Medicare health program, said on Wednesday.

The Trump administration will negotiate prices for the second group of 15 medications, which includes Novo Nordisk’s blockbuster diabetes and weight-loss treatments Ozempic and Wegovy as well as Pfizer’s cancer drugs Ibrance and Xtandi.

Negotiated prices for these drugs, which are among the most expensive for Medicare insurance plans for people aged 65 years and older or with disabilities, will be effective in 2027.

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Biden’s administration had negotiated a price cut of as much as 79% under Medicare for the first group of 10 prescription drugs.

The drug industry has fought the negotiation program, saying it will stifle innovation. It has been pushing the Trump administration to ease the rules, asking, for example, to delay the timeline under which small molecule drugs become eligible for negotiation.