Ozempic, Wegovy among drugs subject to Medicare price controls

Core Insights - Medicare has introduced price controls on 15 prescription medications, including Novo Nordisk's weight-loss and diabetes drugs, Wegovy and Ozempic, aimed at reducing financial burdens for seniors [1][2] Group 1: Drug Price Control Implementation - The price controls for the selected drugs will take effect in 2027 [2] - The Inflation Reduction Act (IRA) allows Medicare to set lower prices on high-expenditure drugs, with the Centers for Medicare & Medicaid Services (CMS) empowered to establish a "maximum fair price" [3][4] - Pharmaceutical companies must agree to the set prices, or face a daily excise tax on sales exceeding the maximum fair price [4] Group 2: Industry Response and Concerns - Novo Nordisk has expressed opposition to government price setting, citing concerns about access to medicines and potential negative impacts on future drug development [4] - A coalition of over 40 groups has called for the repeal of the Drug Price Negotiation Program, arguing it may lead to medicine shortages and increased costs [4][5] Group 3: Impact on Medicare and Drug Usage - Approximately 5.3 million Medicare Part D recipients utilized the newly selected drugs, which accounted for about $41 billion, or 14%, of total Medicare Part D prescription costs from November 2023 to October 2024 [6]