63. Round 2 of Medicare Drug Negotiations Has Begun. What Will Trump Do?
Release Date: 02/21/2025
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info_outline10 drugs were negotiated in 2024 for 1/1/2026. These 15 drugs’ negotiated prices will take effect on 1/1/2027.
The combination of round 1 and round 2 drugs means over a third of total gross covered prescription drug costs under Medicare Part D will already have been subject to negotiation.
Round 2 drugs cover many major disease states seen in Medicare.
Round 1 saw drug costs drop on average 22%. This is better than other government program prices, but prices remain well above other developed nations.
The program needs to mature over time.
Trump has been sympathetic on drug prices and proposed price reduction proposals as Trump 45.
In the election he went back and forth on what he would do if he won again.
In a blow to brand drug makers, he has announced the process will continue with stakeholder input and more transparency.
Trump has a great opportunity to further Medicare drug price negotiations by expanding and applying it to commercial and employer coverage as well.
Trump’s populism will likely prevail over his somewhat friendlier relationship with Big Pharma.