Trulicity, Other Costly Drugs Teed Up for Medicare Price Talks

The Centers for Medicare & Medicaid Services has announced the next 15 drugs slated for Medicare price negotiations. The list includes costly medications that many seniors rely on.

This year's lineup includes six highly prescribed drugs that the American Association of Retired Persons identified as having some of the largest list price increases, including Trulicity (up 51% since 2014), Cozentyx (up 55% since 2015), and Orencia (up 71% since 2021).

This will be the third round of drug price negotiations conducted by the CMS under a 2022 law that allows it to bargain with drugmakers over prices Medicare Part D plans will pay for these medicines. Negotiated prices will take effect in 2028 and benefit both Medicare and seniors.

Under the Inflation Reduction Act, Medicare will identify 15 commonly prescribed, costly drugs for price negotiations. Generally, drugs on the list must not be new or have competition from generic or biosimilar pharmaceuticals.

The makers of the drugs chosen by CMS have until Feb. 28 to decide whether to participate, but if they opt out, they will face a significant financial penalty.

This is the first year drugs covered by Medicare Part B are on the list. Part B drugs are typically administered at doctors' offices and health facilities.

Here's the full list of the drugs and the conditions they treat:

1. Anoro Ellipta — Chronic obstructive pulmonary disease and asthma

2. Biktarvy — Human immunodeficiency virus, or HIV

3. Botox and Botox Cosmetic — Chronic migraines and muscle spasticity in addition to cosmetic uses

4. Cimzia — Crohn's disease

5. Cosentyx — Psoriasis

6. Entyvio — Inflammatory bowel disease

7. Erleada — Prostate cancer

8. Kisqali — Breast cancer

9. Lenvima — Several types of cancer

10. Orencia — Arthritis

11. Rexulti — Major depressive disorder, schizophrenia, and agitation associated with dementia due to Alzheimer's disease

12. Trulicity — Diabetes (this is a GLP-1 drug)

13. Verzenio — Breast cancer

14. Xeljanz and Xeljanz XR — Arthritis

15. Xolair — Asthma

Will I see lower drug costs?

The drug price negotiations have yielded savings for both Medicare beneficiaries and the Medicare program.

The first round of Medicare drug price negotiations in 2024 produced lower prices for 10 medications, including treatments for arthritis, blood clots, cancer, diabetes, heart failure, and kidney disease. The lower prices took effect Jan. 1, 2026, and are expected to save Part D enrollees $1.5 billion in out-of-pocket costs this year.

Lower prices for drugs could mean lower out-of-pocket costs for you until you reach the Part D out-of-pocket maximum, currently $2,100 for covered medications.

Another batch of lower prices that Medicare has already negotiated for 15 additional drugs will take effect Jan. 1, 2027.

Up to 20 additional drugs covered under Medicare Part D or Part B could be selected for price negotiations in 2029.