Medicare bills skyrocketing–uncover the shocking prices of Ozempic and Trulicity and how it affects you!
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As we age, managing our health becomes a top priority, and for many in the senior community, prescription medications are a daily reality. However, the cost of these medications can be a source of stress and financial burden.
A recent report has brought to light the staggering prices of popular diabetes medications Ozempic and Trulicity, which are among the top 25 drugs that have drained Medicare funds without being selected for price negotiation.
The GrayVine is here to dissect this report and offer insights into how you can navigate these high costs and what the future may hold for Medicare negotiations.
The AARP Public Policy Institute's report revealed a concerning trend: the average list prices of these 25 drugs have nearly doubled since their market introduction.
In 2022 alone, Medicare—and by extension, American taxpayers—shelled out close to $50 billion for these medications.
This financial strain isn't just on the system; it directly affects the seven million older adults on Medicare who rely on these drugs and must cover a portion of the cost out-of-pocket.
It's a troubling reality that one in five older adults either don't fill their prescriptions or skip doses to save money.
This is not only dangerous for their health but also indicative of a larger issue within our healthcare system. With approximately 53 million Americans enrolled in a Medicare prescription drug plan in 2024, the need for affordable medication is more pressing than ever.
Thankfully, there's a silver lining. Starting this year, enrollees facing the highest drug costs will benefit from a $2,000 cap on out-of-pocket drug expenses.
AARP officials are emphasizing the importance of empowering Medicare to negotiate drug prices on behalf of enrollees and taxpayers to prevent drug companies from imposing regular price hikes.
"We really are seeing these remarkable price increases year after year," said Leigh Purvis, prescription drug policy principal at AARP’s public policy institute. "It's so important to try to discourage drug companies from taking these regular price increases."
The Inflation Reduction Act of 2022 marked a significant change by allowing Medicare to negotiate prices with drug companies for the first time.
The initial round of negotiations yielded discounts ranging from 38% to 79%, set to take effect in 2026. The drugs are Eliquis, Jardiance, Xarelto, Januvia, Farxiga, Entresto, Enbrel, Imbruvica, Stelara, and the insulins Fiasp and NovoLog.
The next 15 drugs for negotiation will be announced by February 1, 2025, with price reductions effective from January 1, 2027. This is a promising development, but the question remains: will drugs like Ozempic and Trulicity be targeted for discounts?
Another 15 drugs will also be chosen in 2026 for negotiated prices that will be released in 2028. Purvis remarked that it's a "safe bet" that some of the 25 drugs included in AARP's report will be in the next round of Medicare negotiations.
While the list prices of drugs like Janumet have skyrocketed by 293% since 2007, the Pharmaceutical Research and Manufacturers of America argue that list prices don't reflect the actual cost to consumers after rebates and insurance discounts.
They claim that net prices have decreased over the past six years when these factors are considered.
Drug companies now face penalties if their list prices increase faster than inflation, a measure designed to curb year-over-year price spikes.
Danish drugmaker Novo Nordisk has been criticized for the pricing of the diabetes drug Ozempic and weight loss drug Wegovy. He expects that Ozempic will be on the Medicare’s list of drugs to negotiate price concessions.
Source: NBC News / Youtube.
"While the list price is set by Novo Nordisk, taken out of context it can be misleading," Jamie Bennett, representative from Novo Nordisk, said. "The list price does not reflect the rebates, discounts, and fees that Novo Nordisk provides to lower the list price, nor does it reflect the numerous other costs in the system that ultimately impact the price PBMs, health insurers or governments pay."
The hope is that with continued pressure and negotiation, Medicare can help reduce the financial burden on consumers and taxpayers alike.
To learn more about the 2022 Inflation Reduction Act and how it can help you save thousands of dollars in medications, learn more through this story here.
Have you struggled with the price of prescriptions like Ozempic or Trulicity? Do you have tips for managing these expenses? Share your experiences and advice in the comments below!
A recent report has brought to light the staggering prices of popular diabetes medications Ozempic and Trulicity, which are among the top 25 drugs that have drained Medicare funds without being selected for price negotiation.
The GrayVine is here to dissect this report and offer insights into how you can navigate these high costs and what the future may hold for Medicare negotiations.
The AARP Public Policy Institute's report revealed a concerning trend: the average list prices of these 25 drugs have nearly doubled since their market introduction.
In 2022 alone, Medicare—and by extension, American taxpayers—shelled out close to $50 billion for these medications.
This financial strain isn't just on the system; it directly affects the seven million older adults on Medicare who rely on these drugs and must cover a portion of the cost out-of-pocket.
It's a troubling reality that one in five older adults either don't fill their prescriptions or skip doses to save money.
Popular diabetes drugs including Ozempic and Trulicity are among the top 25 medications leading to significant expenditure for Medicare, with costs nearing $50 billion in 2022. Image source: Oakfield pharmacy and Trulicity for Weight Loss via Facebook.
This is not only dangerous for their health but also indicative of a larger issue within our healthcare system. With approximately 53 million Americans enrolled in a Medicare prescription drug plan in 2024, the need for affordable medication is more pressing than ever.
Thankfully, there's a silver lining. Starting this year, enrollees facing the highest drug costs will benefit from a $2,000 cap on out-of-pocket drug expenses.
AARP officials are emphasizing the importance of empowering Medicare to negotiate drug prices on behalf of enrollees and taxpayers to prevent drug companies from imposing regular price hikes.
"We really are seeing these remarkable price increases year after year," said Leigh Purvis, prescription drug policy principal at AARP’s public policy institute. "It's so important to try to discourage drug companies from taking these regular price increases."
The Inflation Reduction Act of 2022 marked a significant change by allowing Medicare to negotiate prices with drug companies for the first time.
The initial round of negotiations yielded discounts ranging from 38% to 79%, set to take effect in 2026. The drugs are Eliquis, Jardiance, Xarelto, Januvia, Farxiga, Entresto, Enbrel, Imbruvica, Stelara, and the insulins Fiasp and NovoLog.
The next 15 drugs for negotiation will be announced by February 1, 2025, with price reductions effective from January 1, 2027. This is a promising development, but the question remains: will drugs like Ozempic and Trulicity be targeted for discounts?
Another 15 drugs will also be chosen in 2026 for negotiated prices that will be released in 2028. Purvis remarked that it's a "safe bet" that some of the 25 drugs included in AARP's report will be in the next round of Medicare negotiations.
While the list prices of drugs like Janumet have skyrocketed by 293% since 2007, the Pharmaceutical Research and Manufacturers of America argue that list prices don't reflect the actual cost to consumers after rebates and insurance discounts.
They claim that net prices have decreased over the past six years when these factors are considered.
Drug companies now face penalties if their list prices increase faster than inflation, a measure designed to curb year-over-year price spikes.
Danish drugmaker Novo Nordisk has been criticized for the pricing of the diabetes drug Ozempic and weight loss drug Wegovy. He expects that Ozempic will be on the Medicare’s list of drugs to negotiate price concessions.
Source: NBC News / Youtube.
"While the list price is set by Novo Nordisk, taken out of context it can be misleading," Jamie Bennett, representative from Novo Nordisk, said. "The list price does not reflect the rebates, discounts, and fees that Novo Nordisk provides to lower the list price, nor does it reflect the numerous other costs in the system that ultimately impact the price PBMs, health insurers or governments pay."
The hope is that with continued pressure and negotiation, Medicare can help reduce the financial burden on consumers and taxpayers alike.
To learn more about the 2022 Inflation Reduction Act and how it can help you save thousands of dollars in medications, learn more through this story here.
Have you struggled with the price of prescriptions like Ozempic or Trulicity? Do you have tips for managing these expenses? Share your experiences and advice in the comments below!
