Millions of Americans who rely on Medicare are set to benefit from big price reductions on many lifesaving and long-term medications.
The Centers for Medicare & Medicaid Services (CMS) has announced new, significantly lower prices for 15 widely used drugs that treat chronic illnesses like cancer, diabetes, and asthma. These new price will take effect starting January 1, 2027.
Prescription drug costs have been a big financial strain for many families. CMS says these price cuts will save Medicare around $12 billion compared to last year.
That means patients and the Medicare system will both spend less while ensuring people can still access important treatments.
Second group of drugs to get price deduction
This is the second group of drugs to get negotiated price cuts under the Inflation Reduction Act, a policy led by former President Joe Biden. The first round covered 10 drugs and will kick in during 2026.
With this new round, a total of 25 drugs will soon have prices set through Medicare negotiations. The CMS noted that these efforts also explains President Donald Trump’s strong push to reduce health care costs:
“President Trump directed us to stop at nothing to lower health care costs for the American people,” Health and Human Services Secretary Robert F. Kennedy Jr. stated in a news release. “As we work to Make America Healthy Again, we will use every tool at our disposal to deliver affordable health care to seniors.”
List of drugs getting deduction
Together, these medicines accounted for about $42.5 billion in Medicare Part D spending in 2024, which is 15% of the programme’s total costs that year.
Here’s how the new monthly prices compare to the current ones:
Ozempic, Rybelsus, Wegovy (diabetes/weight loss): $274 (Wegovy higher dose $385), down from $959
Trelegy Ellipta (asthma): $175, down from $654
Xtandi (prostate cancer): $7,004, down from $13,480
Pomalyst (chemotherapy): $8,650, down from $21,744
Ofev (lung disease): $6,350, down from $12,622
Ibrance (breast cancer): $7,871, down from $15,741
Linzess (chronic constipation): $136, down from $539
Calquence (cancer): $8,600, down from $14,228
Austedo & Austedo XR (Huntington’s disease): $4,093, down from $6,623
Breo Ellipta (COPD): $67, down from $397
Xifaxan (IBS): $1,000, down from $2,696
Vraylar (antipsychotic): $770, down from $1,376
Tradjenta (diabetes): $78, down from $488
Janumet & Janumet XR (diabetes): $80, down from $526
Otezla (psoriatic arthritis): $1,650, down from $4,722