Patients on Medicare will see an average list price reduction of 62% percent on the 15 included drugs.

WASHINGTON, D.C. — The Centers for Medicare and Medicaid Services (CMS) has announced the new lower prices from the second round of Medicare drug price negotiations, building on the previous administration’s inaugural first round, and delivering significant savings for patients on Medicare. 

In 2024, about 5.3 million patients on Medicare used one of the 15 drugs included in this round, which accounted for $42.5 billion in Medicare Part D spending. The newly negotiated drugs include treatments for diabetes, cancer, heart disease, respiratory illnesses, and autoimmune conditions — some of the most common and costly chronic diseases affecting patients on Medicare. 

If the new prices had already been in effect in 2024, patients would have saved an estimated $685 million in out-of-pocket costs, while taxpayers would have saved an estimated $12 billion, according to CMS. You can find the full list of price reductions here. 

Merith Basey, Executive Director of Patients For Affordable Drugs, issued the following statement:

“The Medicare Negotiation Program changed the trajectory of drug pricing in the United States, helping to reduce Big Pharma’s monopoly pricing power, which dictated prices to Americans on Medicare for two decades. This second round of negotiations — now under President Trump — marks another major milestone, delivering continued savings for patients and taxpayers.”

“The lower negotiated prices are more than numbers on a page. For patients who’ve been forced to work multiple jobs, cut pills in half, or choose between filling a prescription and buying groceries, these lower prices will bring long-overdue relief, flexibility, and stability.”

“As we celebrate this moment, we know the work is far from finished. At a time when 47% of Americans are concerned about their ability to pay for a health-related cost next year, we must keep pushing to ensure Pharma’s attacks to undermine the program fail. Patients fought hard for these reforms, and Americans overwhelmingly support expanding the program — including to the millions of patients in the commercial market still awaiting relief. Today’s announcement is proof that lasting change can happen when patients demand it.”

“The reduced cost of Ozempic is such great news for patients like me who constantly worry about the many expenses in our lives,” said Aarolyn McCullough from Michigan. “I have been a substitute teacher a couple of days a week to bring in extra income and take care of bills. The savings from Ozempic’s reduced price may finally allow me to stop substitute teaching or reduce the number of days I need to.” In 2027, the negotiated list price for Ozempic will be reduced to $274 per month – a 71% list price reduction.

“The reduced price of Otezla is promising news that will allow me to afford the medication, pay down debt, and buy more groceries,” said Mary Schmidt from Texas. “I live on a strict budget and need money for other products to help my autoimmune condition, so these savings really matter to me. People with chronic conditions should not have to suffer.” In 2027, the negotiated list price for Otezla will be reduced to $1,650 per month – a 65% price reduction.

“My husband and I are barely surviving, trying to stay alive, paying exorbitant amounts for medication,” said Janet Kerrigan from South Carolina. “My husband Joe is diabetic, and he depends on his Janumet to keep him in control of his blood sugars. His Social Security is $15,000/year, and the price for Janumet is $500-$700/month. Medicare takes out $185/month, which leaves him with around $7,000 a year to live on. The lowering of Janumet would allow us not to worry if we can afford the medication that is keeping him alive.” In 2027, the negotiated list price for Janumet will be reduced to $80 per month – an 85% price reduction.

Lowering drug prices isn’t a partisan goal — it’s an American one, and Medicare negotiation remains one of the most popular reforms in recent history. Polling this year shows that 96% of voters across party lines say it’s important for the government to negotiate with drug companies – and two-thirds support allowing Medicare to negotiate the prices of all prescription drugs. As Big Pharma’s public favorability continues to fall, the success of negotiation demonstrates strong bipartisan momentum to expand these reforms and deliver further relief to patients.

CMS found that, in 2024, the 15 selected drugs earned over $65 billion in combined total global revenue:

The Medicare Drug Price Negotiation Program was established through the 2022 Prescription Drug law, allowing the federal government to negotiate directly with drug manufacturers for lower prices on the most expensive medications covered under Medicare. The first round of negotiated prices, taking effect in January 2026, covered drugs used by 8.8 million people on Medicare, with list price reductions ranging from 38-79%. Medicare Negotiation will save taxpayers nearly $99 billion over the next decade and prevent more than 656,967 premature deaths over seven years due to improved treatment adherence and affordability.

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Patients For Affordable Drugs Now is the only national, patient advocacy organization focused exclusively on policies to lower drug prices. We empower and mobilize patients and allies, hold accountable those in power, and fight to shape and achieve system-changing policies that make prescription drugs affordable for all people in the United States. P4ADNow is bipartisan and does not accept funding from organizations that profit from the development or distribution of prescription drugs. To learn more, visit: PatientsForAffordableDrugsNOW.org