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Medicare Slashes Prices on 15 High-Cost Drugs by 36%

11/26/2025

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Medicare Drug Price Cuts

The Centers for Medicare & Medicaid Services announced that beginning in 2027, 15 high-cost drugs will have price reductions, including Ozempic and Wegovy.
Ozempic and Wegovy drop to $274 from $959 under the Inflation Reduction Act.
The initiative is projected to save Medicare $12 billion and beneficiaries $685 million, with discounts around 36%, up from 22% last year.
A second negotiation round for 15 more drugs will begin in February.

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Trump's Medicare Savings

U.S. President Donald Trump announced Medicare savings of $12 billion from negotiations on 15 high-cost drugs, effective in 2027.
The move follows the Biden-era Inflation Reduction Act that let Medicare negotiate prices.
Critics, including the pharmaceutical industry, say negotiations do not lower out-of-pocket costs and may reduce coverage.
Democrats note ongoing Republican opposition to the Inflation Reduction Act.
Experts question the effectiveness of Trump's voluntary drugmaker agreements to curb prices.

History

Historical Context

The Inflation Reduction Act of 2022, signed into law on August 16, 2022, marked a pivotal change in U.S. healthcare policy by allowing Medicare to negotiate drug prices, a power it previously lacked. This act is projected to save Medicare $12 billion and beneficiaries $685 million, reflecting a broader trend in healthcare reform aimed at controlling pharmaceutical costs amid significant opposition from the industry.

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Medicare Drug Price Cuts

The Centers for Medicare & Medicaid Services announced that beginning in 2027, 15 high-cost drugs will have price reductions, including Ozempic and Wegovy.
Ozempic and Wegovy drop to $274 from $959 under the Inflation Reduction Act.
The initiative is projected to save Medicare $12 billion and beneficiaries $685 million, with discounts around 36%, up from 22% last year.
A second negotiation round for 15 more drugs will begin in February.

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