Good news is coming to Medicare recipients as the list of prescription medications seeing a price drop under the Inflation Reduction Act increases.
The federal government is slashing prices for 15 commonly used prescriptions — including mega-popular weight loss medications.
The Centers for Medicare and Medicaid Services (CMS) announced the new list in late November, saying the negotiated prices will take effect in January 2027.
The move marks the second wave of cuts under the law, which allowed Medicare to negotiate drug prices for the first time.
The first group of 10 medications, which includes drugs treating diabetes, blood clots, heart disease and more, will see lower prices beginning in 2026, according to CMS’s published list of negotiated drugs and prices.
The newly selected medications include treatments for cancer, asthma, diabetes, obesity and several other chronic conditions.
Popular diabetes and weight-loss drugs — including Ozempic and Wegovy — are among those slated for price reductions.
Federal officials say discounts across the group range from roughly 38% to more than 80% off current list prices.
The negotiated amounts represent what Medicare will pay drugmakers — not necessarily the out-of-pocket price patients will see at the pharmacy counter.
Beneficiaries’ costs will still depend on their Part D plans, copay structures, and annual spending.
Still, the lower prices will yield major savings for the Medicare program overall.
The Trump administration said it projects billions in taxpayer savings from the negotiation effort during a meeting last week, The Associated Press reported.
For decades, Medicare was legally barred from negotiating drug prices directly with pharmaceutical companies.
The Inflation Reduction Act changed that in 2022, giving CMS new authority to target high-cost, heavily used drugs for negotiation.
Each year, the agency selects additional medications that meet those criteria — a process federal officials say will continue in future years.
Price reductions for the newly announced group will take effect on Jan. 1, 2027, according to CMS.
More drugs are expected to be added to the negotiation program as federal regulators continue efforts to curb prescription costs for millions of seniors and people with disabilities.
The list of medications that will see a price reduction in 2027 based on the most recent round of negotiations are:
- Ozempic, Rybelsus and Wegovy, for Type 2 diabetes, cardiovascular disease and weight loss – $274 negotiated price, down from the $959
- Trelegy Ellipta, asthma, COPD – $175, down from $654
- Xtandi, prostate cancer – $7,004, down from $13,480
- Pomalyst, a chemotherapy drug for Kaposi sarcoma and multiple myeloma – $8,650, down from $21,744
- Ofev, idiopathic pulmonary fibrosis – $6,350, down from $12,622
- Ibrance, breast cancer – $7,871, down from $15,741
- Linzess, chronic constipation, irritable bowel syndrome – $136, down from $539
- Calquence, cancer drug for chronic lymphocytic leukemia, small lymphocytic lymphoma, Mantle cell lymphoma: $8,600, down from $14,228
- Austedo and Austedo XR, chorea in Huntington’s disease, Tardive dyskinesia – $4,093, down from $6,623
- Breo Ellipta, asthma, chronic obstructive pulmonary disease – $67, down from $397.
- Xifaxan, Hepatic encephalopathy, irritable bowel syndrome with diarrhea – $1,000, down from $2,696.
- Vraylar, Bipolar 1 disorder, major depressive disorder, schizophrenia – $770, down from $1,376
- Tradjenta, Type 2 diabetes – $78, down from $488
- Janumet and Janumet XR, Type 2 diabetes – $80, down from $526
- Otezla, oral ulcers in Behcet’s disease, plaque psoriasis, psoriatic arthritis – $1,650, down from $4,722