Trump’s Health Agency Signals Moving Forward on Drug Price Talks

President Donald Trump’s Medicare agency is seeking to bring more transparency to the US government’s drug price negotiation program, indicating plans to move forward with the second round of the program initiated by the Biden administration.

“Lowering the cost of prescription drugs for Americans is a top priority of President Trump and his Administration,” the Centers for Medicare & Medicaid Services said in a statement Wednesday.

“As the second cycle begins under the Trump Administration, CMS is committed to incorporating lessons learned to date from the program and to considering opportunities to bring greater transparency in the Negotiation Program.”

The program originated from the Biden administration’s signature Inflation Reduction Act, which allows the US government to slash the cost of some of the most expensive and widely used drugs covered under Medicare.

Former President Joe Biden’s CMS unveiled on Jan. 17 the list of 15 additional Part D drugs selected for the program, which included Novo Nordisk A/S blockblusters Ozempic and Wegovy; Astellas Pharma Inc.’s Xtandi; Pfizer Inc.’s Ibrance; and Bristol Myers Squibb Co.’s Pomalyst.

Drug prices negotiated during the second round are set to take effect in 2027.

“CMS intends to provide opportunities for stakeholders to provide specific ideas to improve the Negotiation Program, consistent with the goals of achieving greater value for beneficiaries and taxpayers and continuing to foster innovation,” the agency wrote Wednesday.

The statement is the agency’s first on the program following Trump’s return to the White House on Jan. 20. The US Department of Health and Human Services issued a pause on mass communications and public appearances “that are not directly related to emergencies or critical to preserving health.” However, there are exceptions for announcements that are “mission critical.”

The pharmaceutical industry has long pushed back on the Inflation Reduction Act’s price-setting provisions, claiming it will harm innovation and affect patient access to medicines. Eli Lilly & Co. and other drugmakers said they planned to ask Trump to pause the negotiations.

Manufacturers with drug selected for the second round of negotiations have until Feb. 28 to determine whether they will participate in the program.