The Biden administration has released a list of ten drugs that will be subject to price negotiations between manufacturers and Medicare. These negotiations aim to lower drug costs for older adults in the U.S. The list includes two blood thinners and a diabetes medication, which are the most widely used among Medicare enrollees.

The most used drug on the list is Eliquis, a blood thinner co-developed by Pfizer, with 3.7 million Medicare enrollees using it. The second most used drug is Jardiance, a diabetes medication produced by Eli Lilly and Company, with nearly 1.6 million Medicare enrollees. The third drug on the list is Xarelto, another blood thinner manufactured by Johnson & Johnson, with about 1.3 million beneficiaries using it.

Medicare Part D spent a significant amount on these three drugs, with $16.5 billion spent on Eliquis, approximately $7 billion on Jardiance, and $6 billion on Xarelto. These ten drugs accounted for $50.5 billion, or around 20%, of total Part D prescription drug costs for the period from June 2022 to May 2023.

Manufacturers of the listed drugs have until October 1st to decide if they want to negotiate prices with the government. If they decline, they might have to pay a significant tax or remove their products from Medicare and Medicaid. The negotiation process is expected to continue through next year, with new prices listed by September 2024. The new prices must be at least 25% lower than the original list prices.