The Inflation Reduction Act of 2022 included a drug-related provision requiring HHS to negotiate prices with drug companies for certain drugs covered under Medicare Part D. This requirement is the culmination of years of debate among lawmakers over whether to grant the federal government the authority to negotiate drug prices in Medicare. On January 17, 2025, CMS announced the list of 15 Part D drugs selected for the second round of price negotiation, after concluding the first round of negotiation for 10 Part D drugs in August 2024. These 15 drugs include the popular diabetes and obesity drugs, Ozempic and Wegovy, along with other drugs used to treat asthma and chronic obstructive pulmonary disease, type 2 diabetes, different types of cancer and other medical conditions. Negotiated prices for these drugs will take effect on January 1, 2027. [KFF, January 2025]
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