Medicare Drug Price Negotiation Program Yields Significant Reductions for Key Medications in 2027
Medicare's drug price negotiation program is set to dramatically lower the cost of several high-profile medications starting January 1, 2027. The Centers for Medicare & Medicaid Services (CMS) has reported substantial reductions in negotiated prices compared to 2024 list prices for a new batch of 15 high-cost Part D drugs, adding to the 10 medications whose negotiated prices took effect in 2026. For instance, a 30-day supply of Ozempic, Rybelsus, and Wegovy will have a negotiated price of approximately $274 in 2027, a significant drop from their 2024 list price of $959. Similarly, Trelegy Ellipta's negotiated price will be $175, down from $654, and Linzess will be $136, compared to its $539 list price. Other familiar names on the 2027 list include Breo Ellipta, Tradjenta, Janumet and Janumet XR, Xifaxan, Vraylar, Ibrance, Xtandi, and Otezla. While these negotiated prices represent a major shift, beneficiaries' actual out-of-pocket costs will still depend on their specific Medicare drug plan, its formulary,...