Popular weight loss drugs are included in the discounted prescriptions
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New Medicare-negotiated prices for 15 widely used medications take effect in 2027, impacting more than 5 million beneficiaries.
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Total projected savings: $12 billion for Medicare and $685 million in reduced out-of-pocket spending for patients.
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Drugs with the deepest discounts include Janumet, Breo Ellipta, Tradjenta, Ozempic, Wegovy, Linzess and others.
Millions of older Americans are expected to see meaningful relief at the pharmacy counter after Medicare reached new pricing agreements for 15 widely used prescription drugssome of which currently rank among the most expensive in the Medicare Part D program.
The updated prices, negotiated under the Medicare Drug Price Negotiation Program, take effect in 2027.
The selected medications are used to treat conditions affecting millions of seniors, including diabetes, cancer, asthma, chronic obstructive pulmonary disease (COPD), irritable bowel syndrome, and obesity. Popular weight-loss and diabetes drugs Ozempic and Wegovy are among those with newly negotiated discounts.
According to the Centers for Medicare & Medicaid Services (CMS), more than 5.3 million Part D enrollees used at least one of the affected drugs in 2024, meaning the changes are poised to have a broad financial impact.
Billions in savings
Federal officials estimate that if the negotiated prices had been in effect this year, Medicare would have saved roughly $12 billion. When the new prices take effect in 2027, beneficiaries are expected to save an estimated $685 million in out-of-pocket costs.
CMS says the reductions help ensure a stronger, more sustainable Medicare program while expanding access to essential treatments for current and future beneficiaries.
The negotiated discounts vary by product, but several drugs will see price cuts of more than 70%. Among the largest reductions:
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Janumet / Janumet XR (type 2 diabetes): 85%
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Breo Ellipta (asthma, COPD): 83%
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Tradjenta (type 2 diabetes): 84%
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Ozempic, Rybelsus, Wegovy (diabetes, cardiovascular disease, obesity): 71%
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Trelegy Ellipta (asthma, COPD): 73%
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Linzess (constipation, IBS-C): 75%
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Otezla / Otezla XR (psoriasis, psoriatic arthritis): 65%
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Xifaxan (hepatic encephalopathy, IBS-D): 63%
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Pomalyst (multiple myeloma, Kaposi sarcoma): 60%
Other treatmentsincluding Ibrance for breast cancer, Ofev for pulmonary fibrosis, Xtandi for prostate cancer, Vraylar for psychiatric conditions, and Calquence for certain blood cancerswill also see significant reductions. The new prices apply across all dosages and formulations.
Posted: 2025-12-01 14:28:05















