AARP's new research finds price growth for top Part D prescription drugs has exceeded inflation, making a case for allowing Medicare to negotiate prices.

Concurrently, a preprint from the industry-backed Vital Transformation found a 50% drop in company investments into small-molecule drug development.

Popular diabetes drugs such as Ozempic and Trulicity are among 25 drugs Medicare has spent the most on but hasn't yet selected for price negotiation, according to a report released Thursday. The report from AARP Public Policy Institute said average list prices on these 25 drugs have nearly doubled since they hit the market and collectively cost Medicare ‒ and American taxpayers ‒ nearly $50 billion in 2022.

Findings show the impact of drug companies’ relentless price increases, underscoring the importance of the changes included in the historic 2022 drug law.

Drugmakers have started 2025, implementing price hikes for 583 products within the first two days of the new year alone, 46brooklyn Research, an Ohio non-profit focused on U.S. drug pricing data, said in a report on Thursday.

People with Medicare Part D plans shoulder a share of the cost of their prescription drugs. Under the standard Part D benefit, enrollees are responsible for 25 percent of their dr