Biden administration expected to unveil Tuesday first drugs subject to Medicare negotiations

The Biden administration is preparing to reveal Tuesday the first 10 drugs that will be subject to negotiation in Medicare, according to two sources briefed on the matter.

The controversial program was authorized by the Inflation Reduction Act that Democrats pushed through Congress last year. The drug industry and their supporters, however, are determined to quash the effort, filing at least eight lawsuits in recent weeks declaring it unconstitutional.

Undaunted, the Centers for Medicare and Medicaid Services has pushed ahead with its historic new power, which Democrats have long argued is a way to lower drug prices. The White House is planning public events to coincide with the announcement, which comes a few days ahead of the agency’s September 1 deadline to make the list public.

Multiple industry experts and the drugmakers themselves have predicted which medications are likely to be in the first round of negotiations. They include Eliquis, manufactured by Bristol Myers Squibb, which said in a lawsuit filed in June that it expects its blood thinner to be on the initial list, and Januvia, a diabetes drug made by Merck, which was the first to take legal action in early June. Other names floated include the blood thinner Xarelto, the cancer treatment Imbruvica and Ozempic, a blockbuster medication used for diabetes and weight loss.

The initial set of drugs will be chosen from the top 50 Part D drugs that are eligible for negotiation that have the highest total expenditures in Medicare. CMS will consider multiple factors when developing its initial offer, including the drugs’ clinical benefits, the price of alternatives, research and development costs and patent protection, among others.

Drugmakers have a month to decide whether to participate. CMS and the manufacturers will then negotiate, and the agency will publish the agreed-upon maximum fair prices…