The BareStory
The U.S. Centers for Medicare & Medicaid Services (CMS) has announced newly negotiated prices for 15 prescription medications covered under Medicare Part D, which will take effect in 2027. The price reductions were enabled by the 2022 Inflation Reduction Act, which for the first time allowed the federal health agency to negotiate drug prices. The selected drugs include treatments for diabetes, weight loss, cancer, and asthma, such as Ozempic, Wegovy, and Calquence.
According to the federal government, the negotiated prices are expected to cut spending on these specific drugs by 44%, or about $12 billion. Discounts from the medications' list prices will range from 38% to 85%. CMS stated that the 5.3 million Medicare beneficiaries who used these drugs in the past year would see savings. The agency also projects the changes will save the 55 million people enrolled in Part D plans a total of approximately $685 million. For example, the price for Ozempic will be $274, a 71% discount from its list price.
Reactions from pharmaceutical companies were mixed. A spokesperson for GSK said the company was pleased with the agreement and is committed to working with CMS. In contrast, a representative for Novo Nordisk expressed "serious concerns" about the law's impact and stated the company opposes government price setting, claiming it has not lowered patient costs. A CMS official described the negotiation process as "serious, fair, and disciplined."
These negotiations are separate from other price-cutting deals announced by the Trump administration. One such agreement set the price for Ozempic and Wegovy for Medicare beneficiaries at $245. CMS did not specify how the different pricing programs would interact.
How it may affect me
As a U.S. reader:
• Medicare beneficiaries who use one of the 15 selected drugs, including treatments for diabetes or cancer, may see lower prescription costs starting in 2027.
• The final cost for some drugs is uncertain, as different government agreements have set conflicting prices for the same medication without clarification on which will apply.
• The actual savings for patients are disputed, as a major drugmaker claims the policy has not reduced patient costs, directly contradicting government projections.
