Drugmakers opt in to Medicare drug price negotiations – here's what happens next

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Drugmakers opt in to Medicare drug price negotiations – here's what happens next
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The lengthy negotiation process with Medicare won't end until August 2024, with reduced prices going into effect in January 2026.

, which passed last year, empowered Medicare to negotiate drug prices for the first time in the program's six-decade history. The lengthy negotiation process won't end until August 2024, with reduced prices going into effect in January 2026.

Jardiance, made by Boehringer Ingelheim, is used to lower blood sugar for people with Type 2 diabetes.Januvia, made by, is used to treat Type 2 diabetes., is used to treat rheumatoid arthritis.Stelara, made by J&J subsidiary Janssen, is used to treat Crohn's disease.Many of the drugmakers contend that they had no real choice but to participate in the negotiations, specifically due to the penalties they could face if they choose not to.

That statement echoes the arguments outlined in at least nine separate lawsuits drugmakers filed against the Biden administration in recent months seeking to declare the negotiations unconstitutional. CMS will then make an initial price offer to manufacturers in February, and the companies have a month to accept or make a counteroffer.

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