By Daisy Brown, Legislative Liaison, TSCL
In November 2025, the Centers for Medicare and Medicaid Services (CMS) announced new, freshly negotiated prices for 15 of its costliest drugs—including the popular weight-loss drugs Ozempic, Wegovy, and Rybelsus. When these prices take effect at the start of 2027, Medicare expects to save about $8.5 billion.
Since When Can Medicare Negotiate Drug Prices?
CMS gained the power to negotiate prices directly with pharmaceutical companies through the Inflation Reduction Act (IRA), passed in 2022. Prior to the IRA’s passage, Medicare was barred by law from negotiating with drugmakers.
Medicare’s first round of drug price negotiations took place in 2024, with new prices taking effect in January 2026. The IRA limited negotiations to only 10 drugs in 2024, but in 2025 (and in all future years) that number expands to 15. Once negotiations are complete, the drugs’ negotiated prices are tied to an inflation index to sustain their long-term affordability.
What Medicines Saw New Prices Announced?
CMS has targeted the drugs that will yield the most savings possible to the federal government and Medicare Part D beneficiaries. They range from treatments for psoriasis, diabetes, and obesity to medicines for cancer, irritable bowel syndrome, and asthma. You can see a complete list in the table below, which includes the name of each drug, its negotiated price Medicare Part D will pay in 2027, its list price from 2024, and expected savings.
How Can You Get Access to These Prices?
To be eligible for lower prices negotiated by Medicare, you must be enrolled in Medicare Part D or a Medicare Advantage prescription drug plan. From there, the rest is simple.
All Medicare Part D and Medicare Advantage prescription drug plans are legally required to include drugs that complete price negotiations, and must include those drugs in their coverage at the agreed-upon cost. The new prices must be made available to eligible individuals and pharmacies alike, and CMS must conduct ongoing formulary reviews to address any practices that could affect your access.
The best thing for you to do is talk with an expert, such as a healthcare provider or licensed insurance agent. Together, review whether you take any of the drugs whose prices just took effect on January 1st (the 10 drugs negotiated in 2024) and confirm that you’re paying the appropriate amount. Then, review the list of drugs whose new prices will take effect next year (shared in the table above) so you can start projecting any future savings.