The U.S. Centers for Medicare and Medicaid Services (CMS) on Tuesday announced that it has secured lower prices for 15 of its highest‑cost medications, resulting in substantial annual savings on prescription expenses.
Drug Price Reductions Under Biden’s IRA Now Include Weight-Loss Drugs
The new prices will take effect in 2027, and the negotiated prices include a monthly cost of $274 for Novo Nordisk’s (NYSE:NVO) popular GLP-1 drug, semaglutide, sold as Wegovy, Ozempic, and Rybelsus.
Other drugs that saw significant price reductions include AstraZeneca’s (NASDAQ:AZN) leukemia drug Calquence, Boehringer’s lung treatment Ofev, and Pfizer’s (NYSE:PFE) breast cancer drug Ibrance. These medications were each reduced by 40%-50% from their estimated net prices.
The department also stated that when the negotiated prices take effect in 2027, Medicare enrollees are expected to save approximately $685 million in out-of-pocket costs, while Medicare itself will save $12 billion.
These changes expand upon other measures included in the Inflation Reduction Act (IRA), which was signed into law by former President Joe Biden.
Trump Administration’s Push For Lower Drug Prices
This development comes at a time when Medicare costs are already on the rise. In 2026, Medicare’s standard monthly Part B premium is set to increase by 9.7% to $202.90, adding to the financial burden on seniors facing rising health costs.
Meanwhile, the pharmaceutical industry has been under pressure from the Trump Administration to lower drug prices. Earlier this month, President Donald Trump announced a sweeping agreement with Eli Lilly (NYSE:LLY) and Novo Nordisk to lower prices and expand coverage for popular weight-loss drugs like Zepbound and Wegovy. Beginning April 2026, Medicare and Medicaid will cover obesity treatments, including GLP-1 drugs, cutting patient costs to $50–$350 per month instead of the current $1,000-plus.
In September, Pfizer was the first to reach a historic agreement with the Trump administration to lower U.S. drug prices, aligning them with the lowest prices paid in other developed countries under the most-favored-nation (MFN) policy.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
