Summary
President Donald Trump announced price cuts for certain medicines, including Ozempic, due to negotiations stemming from the Inflation Reduction Act of 2022. This law, passed during President Joe Biden's term, allows the government to negotiate drug prices, leading to significant savings. Some politicians credit Trump for the lower prices, while others highlight the role of the previous administration's legislation.
Key Facts
- President Donald Trump announced lower prices for drugs like Ozempic, citing savings in billions.
- The Inflation Reduction Act (IRA) of 2022, signed by President Joe Biden, allows Medicare to negotiate drug prices.
- Ozempic was responsible for 2% of Medicare Part D spending in 2022.
- The Trump administration noted price cuts for drugs like Ozempic would bring $12 billion in federal savings.
- Democrats credit the IRA for giving the government the power to negotiate drug prices.
- By 2027, negotiated prices for certain drugs, including Ozempic, are expected to take effect.
- Over 5.3 million beneficiaries will be affected by the new prices, with cuts up to 71%.
- The pharmaceutical industry has challenged the 2022 law in court.
