By Sam StevensonShareNewsweek is a Trust Project memberThe Centers for Medicare & Medicaid Services (CMS) has announced sweeping price cuts for 15 widely used prescription drugs that treat chronic diseases, including cancer, diabetes, and asthma.
Why It Matters
These cuts, amounting to a net savings of $12 billion from last year's Medicare spending, come as the cost of prescription medications remains a significant concern for millions of Americans, especially seniors.
With these reductions, both beneficiaries and the Medicare program are expected to gain substantial financial relief, making vital medications more affordable and supporting Medicare’s long-term sustainability.
...What To Know
On November 25, the CMS announced that new negotiated Maximum Fair Prices (MFPs) for 15 drugs will take effect on January 1, 2027.
These price cuts follow ongoing policy efforts shaped by the Inflation Reduction Act, a policy initiative led by former President Joe Biden. They also reflect President Donald Trump’s “aggressive push for lower prices for Medicare beneficiaries,” according to the CMS.
The affected drugs, which include treatments for cancer, diabetes, asthma, and other chronic illnesses, represented about $42.5 billion in total gross covered prescription drug costs under Medicare Part D in 2024—approximately 15 percent of total spending for the program in that period, the CMS reported.
These new prices are part of a second negotiation cycle under the Medicare Drug Price Negotiation Program. Combined with 10 drugs previously negotiated by the Biden administration—set to take effect in 2026—25 drugs will soon have MFPs set by Medicare.
Full List of Drug Prices Being Cut by Medicare
According to the CMS, the 15 drugs included in this second round and their negotiated 30-day supply prices, compared to 2024 list prices, are:
- Ozempic, Rybelsus, Wegovy (Type 2 diabetes/weight loss): $274 (was $959; Wegovy higher dose: $385)
- Trelegy Ellipta (asthma): $175 (was $654)
- Xtandi (prostate cancer): $7,004 (was $13,480)
- Pomalyst (chemotherapy): $8,650 (was $21,744)
- Ofev (idiopathic pulmonary fibrosis): $6,350 (was $12,622)
- Ibrance (breast cancer): $7,871 (was $15,741)
- Linzess (chronic constipation): $136 (was $539)
- Calquence (cancer): $8,600 (was $14,228)
- Austedo & Austedo XR (Huntington’s disease): $4,093 (was $6,623)
- Breo Ellipta (COPD): $67 (was $397)
- Xifaxan (IBS/diarrhea): $1,000 (was $2,696)
- Vraylar (antipsychotic): $770 (was $1,376)
- Tradjenta (diabetes): $78 (was $488)
- Janumet & Janumet XR (diabetes): $80 (was $526)
- Otezla (psoriatic arthritis): $1,650 (was $4,722)
...What People Are Saying
Health and Human Services Secretary Robert F. Kennedy Jr. said: “President Trump directed us to stop at nothing to lower health care costs for the American people. As we work to Make America Healthy Again, we will use every tool at our disposal to deliver affordable health care to seniors.”
CMS Administrator Mehmet Oz, MD, said: “This year’s results stand in stark contrast to last year’s. Using the same process with a bolder direction, we have achieved substantially better outcomes for taxpayers and seniors in the Medicare Part D program—not the modest or even counterproductive ‘deals’ we saw before.”
CMS Deputy Administrator and Medicare Director Chris Klomp said: “Whether through the Inflation Reduction Act or President Trump’s Most Favored Nation policy, this is what serious, fair, and disciplined negotiation looks like. I’m deeply proud of our team, who execute exceptionally well to bring affordability to the country in everything we do.”
Professor Stacie Dusetzina, a health policy expert at Vanderbilt University, told NBC: “The price negotiations look very reasonable to me. It should hopefully provide some relief for taxpayers and beneficiaries in the long run.”
What Happens Next
Drugmakers participated in negotiations with the CMS in 2025, and the new prices will be enforced by 2027. Medicare expects savings for enrollees to total about $685 million in 2027.
In the meantime, the initial 10 drugs negotiated under former Biden’s Inflation Reduction Act will see their lower prices in effect from January 1, 2026.
CMS will update the affected drug list and prices annually, and negotiations are expected to continue for additional expensive drugs in future cycles.
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