Jan. 17, 2025 – Medicare will negotiate the prices of weight loss drugs Wegovy and Ozempic with drug companies, a move that could create big savings for seniors who take the drugs, the Biden administration announced Friday.
The weight loss drugs were on a list of 15 medicines whose prices will be negotiated directly between the government and drugmakers. The negotiations will fall to the incoming Trump administration, but it’s unclear if the incoming president supports the price negotiations.
If the negotiations work, the new prices would take effect in 2027, the U.S. Department of Health and Human Services said in a news release.
Wegovy, Ozempic, and other weight loss drugs have drastically changed the treatment of obesity, but consumers have complained about high out-of-pocket prices.
Medicare does not cover the two drugs for weight loss alone, though Medicare covers Ozempic for people with diabetes and Wegovy for a smaller number of people who have heart problems and obesity.
When doctors prescribe the drugs for obesity, private insurance companies may not cover the purchases, which can cost consumers thousands of dollars a year out of pocket.
“For some people this is a big deal,” HHS Secretary Xavier Becerra said, according to The Associated Press. “Some folks have to skip a dose in their prescription so they can make a prescription last longer.”
Ozempic and Wegovy are made by Novo Nordisk. According to NBC News, the company said it opposes to the pricing negotiations but will work with the incoming administration to "deliver meaningful solutions for patients."
The drugs on the list announced Thursday were:
- Ozempic, Rybelsus, and Wegovy, for diabetes and obesity
- Trelegy Ellipta, for lung conditions
- Xtandi, for prostate cancer
- Pomalyst, for blood cancer
- Ibrance, for breast cancer
- Ofev, for lung conditions
- Linzess, for gut conditions
- Calquence, for blood cancers
- Austedo and Austedo XR, for neurological diseases
- Breo Ellipta, for lung conditions
- Tradjenta, for diabetes
- Xifaxan, for liver and gut problems
- Vraylar, for depression
- Janumet and Janumet XR, for diabetes
- Otezla, for inflammatory conditions
Under a new law, the Inflation Reduction Act, Medicare can negotiate the prices of certain prescription drugs with the goal of making them less expensive for seniors. Medicare started with 10 drugs last August. The reduced prices for those 10 drugs should begin in 2026, HHS said.
