The federal government just identified the first 10 medications that will be subject to direct price negotiations with manufacturers, as part of a major new initiative to reduce prescription drug costs in Medicare.
The list includes a pair of widely used blood thinners, Eliquis and Xarelto, as well as the cancer therapy Imbruvica. It also includes Farxiga, Jardiance and Januvia, all of which treat diabetes.
All told, the 10 drugs on the list accounted for $50.5 billion in total spending in Medicare’s outpatient prescription drug program for the period between June 1, 2022, and May 31, 2023, according to the Department of Health and Human Services. That’s about one-fifth of what the program, known as Part D, spent on all prescription drugs during that period.
The announcement represents the first step in a process set to unfold over the coming year, with the government collecting data and public input, and then exchanging price offers with manufacturers over how much Medicare will…