Pharmaceutical Companies Reluctantly Agree to Medicare Price Negotiations

All drugmakers responsible for the 10 prescription medicines subject to the first-ever price negotiations for the U.S. Medicare health program, including Amgen and Novartis, have signed on to participate in the talks by the Oct. 1 deadline. Failure to do so would have resulted in steep penalties, including high taxes on drug sales or withdrawal from Medicare and Medicaid programs. Some drugmakers have filed lawsuits against the U.S. Department of Health and Human Services, claiming the process is unconstitutional. The new prices, which must be at least 25% lower than the current list, will take effect in 2026, aiming to save $25 billion per year on drug prices by 2031.