### Medicare Drug Price Negotiations Continue Under Trump Administration

As President Trump highlights his efforts to reduce drug prices through executive orders, the Medicare drug price negotiations, which began under the Biden administration, are quietly progressing. Novo Nordisk and Amgen have confirmed to NPR that they received initial price offers from the government, signaling the start of a bargaining process that could extend until October. The Department of Health and Human Services has not provided any comments on the current state of these negotiations.

Medicare is negotiating prices for 15 drugs, including Novo Nordisk's widely-used diabetes medication, Ozempic. The government aims to finalize the new Medicare prices by November 30, with reduced prices scheduled to take effect in January 2027. Dr. Ben Rome, a health policy researcher at Harvard Medical School, described the negotiations as "a train that's moving along the tracks in the background," and seemed to suggest that the Trump administration is allowing the process to proceed.

The concept of Medicare negotiating drug prices is a comparatively new initiative that became possible with the passage of the Inflation Reduction Act in 2022. Medicare Part D, which covers over 50 million seniors, previously lacked this negotiating authority. This marks the second round of annual price discussions. According to Dr. Rome, the negotiation process is unlikely to halt unless the Trump administration decides to disregard Congress' directives.

The initial round of price negotiations was completed last year, with the government announcing the new prices for ten drugs in August. These drugs saw price reductions ranging from 79% for the diabetes medication Januvia to 38% for the cancer treatment Imbruvica. The newly negotiated prices for these medications are set to become effective in January 2026.

Novo Nordisk and Amgen, the makers of Otezla, a drug used to treat psoriasis and arthritis, have both confirmed receipt of the preliminary offers but declined to provide further comments on the negotiation process. Meanwhile, the Centers for Medicare and Medicaid Services issued draft guidance on May 12 for the third round of negotiations, expected to start in early 2026. Dr. Rome sees this as an indication that the Trump administration intends to continue the negotiation program initiated by the Biden administration.

While President Trump has promoted his own drug pricing initiatives, such as the "most favored nation" executive order aiming to lower U.S. drug prices and make other countries pay more, the specifics of how these plans would be implemented remain unclear.

Interestingly, Project 2025, a conservative blueprint by the Heritage Foundation that has resonated with President Trump's policies, argues for repealing Medicare drug price negotiations. Nevertheless, until such a repeal can be enacted, the plan suggests that any administration should implement the negotiations prudently to minimize potential negative impacts and avoid unintended consequences.