The Centers for Medicare and Medicaid Services announced lower prices on 15 expensive prescription drugs, including Ozempic and Wegovy, under the Inflation Reduction Act.
The Biden administration created the negotiation program in 2022, and this marks its second round. Last year’s negotiated prices for 10 other drugs will begin in 2026, while these new cuts take effect in 2027.
The negotiated prices sharply reduce what Medicare will pay drugmakers. Type 2 diabetes and weight loss drugs Ozempic and Wegovy will drop to $274 for a 30-day supply, down from $959.
Cancer drug Xtandi will fall to $7,004 from $13,480, and asthma drug Trelegy Ellipta will drop to $175 from $654.
CMS says the discounts could save taxpayers $12 billion and reduce out-of-pocket costs for seniors by $685 million in 2027.
Americans continue demanding relief as many struggle to afford medications. Studies show that about 1 in 5 adults skip prescriptions due to cost.