August 29, 2023
HHS Names First Ten Drugs for Medicare Negotiations
On August 29, the Biden Administration named the first ten Part D drugs selected for negotiation under the Medicare Drug Price Negotiation Program pursuant to the Inflation Reduction Act (IRA). The list of selected drugs is as follows:
- Fiasp; Fiasp FlexTouch; Fiasp PenFill; NovoLog; NovoLog FlexPen; NovoLog PenFill
The reduced list prices are scheduled to go into effect on January 1, 2026; however, the pending outcomes of several lawsuits challenging the constitutionality of the IRA could impact this timeline. AstraZeneca is the latest company to file a lawsuit against the Administration with respect to the IRA’s drug price negotiation program bringing the total suits filed against the program to eight.
Drug manufacturers with drugs selected for negotiation will have until October 1, 2023 to decide whether to participate in negotiation talks. If they decline, they could face an excise tax of up to 95 percent on product sales. After a series of meetings with each manufacturer, the negotiation period is set to end on August 1, 2024, with the final price released one month later.
To view the press release, CLICK HERE.
To view the fact sheet, CLICK HERE.