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In an announcement regarded as a milestone for the public health system in the United States, Medicare has confirmed a significant reduction in the prices of 15 high-cost prescription medications, including some as popular as Ozempic and Wegovy, commonly used to treat type 2 diabetes and obesity.
The measure, which will come into effect in 2027, is the result of the direct price negotiation program initially driven by the Inflation Reduction Act (IRA), enacted by the Biden administration in 2022.
According to the Centers for Medicare and Medicaid Services (CMS), these discounts will result in an estimated savings of $685 million in out-of-pocket expenses for program beneficiaries, as well as a $12 billion federal savings if the new prices had been in effect in 2024.
Essential medications with historic discounts
The cuts affect medications that, according to CMS, accounted for more than 15% of the total spending of Medicare Part D in 2024, which amounts to approximately $42.5 billion.
The negotiated prices correspond to continuous use treatments for chronic diseases such as diabetes, cancer, respiratory illnesses, and psychiatric disorders, many of which lack generic or biosimilar alternatives.
Among the most notable discounts are:
Ozempic, Rybelsus, and Wegovy (for type 2 diabetes, obesity, and cardiovascular diseases): drop from $959 to $274, representing a 71% discount.
JanuMet and JanuMet XR (for type 2 diabetes): reduced by 85%, from $526 to just $80 per month.
Pomalyst (cancer treatment): price reduced from $21,744 to $8,650 — a 60% discount.
A change driven by law and political pressure
This advancement is possible due to a key provision of the Inflation Reduction Act, which lifted the 20-year ban on direct price negotiations by Medicare, facing strong pressures from the pharmaceutical industry and Republican opposition in Congress.
"The results of this year stand in stark contrast to those of last year... We have achieved substantially better outcomes for taxpayers and seniors in the Medicare program," stated Dr. Mehmet Oz, administrator of CMS.
The federal government also highlighted the political significance of the progress.
“The president Trump urged us not to stop at anything to reduce healthcare costs for the American people,” stated Health and Human Services Secretary Robert F. Kennedy Jr., emphasizing that the goal is to “make America healthy again.”
Comparisons with previous agreements and tensions with pharmaceutical companies
U.S. media have noted that the prices negotiated by Medicare are in some cases less favorable than those obtained by the Trump administration through separate agreements with pharmaceutical companies.
In November, Trump signed a pact with Novo Nordisk that reduced the price of Ozempic and Wegovy to $245 per month.
In contrast, the new official price under Medicare will be $274.
"It is not clear why Novo [Nordisk] would promise a different price in two different places," commented Dr. Benjamin Rome from Brigham and Women's Hospital in Boston.
The Danish pharmaceutical company issued a statement explaining that it expects "more clarity from CMS on how prices and coverage will work," and reiterated its opposition to government intervention.
"We still have serious concerns about the impact of the Inflation Reduction Act on patients," they indicated.
Reactions from experts and organizations
The measure has been well received by organizations such as AARP, which represents more than 125 million Americans over the age of 50.
Its executive director, Myechia Minter-Jordan, stated that this announcement "marks another important step forward in our long-standing efforts to reduce the prices of prescription medications."
From KFF, an independent organization analyzing health policy, it was highlighted that the negotiated prices represent an average savings of 44% compared to what Medicare would have paid in 2024.
Future prospects: new rounds of negotiations
This is only the second group of medications subject to negotiation.
The federal administration announced that in 2026 it will begin a third round with an additional 15 drugs, although experts warn that some expensive cancer treatments, such as Keytruda and Opdivo, may be excluded due to recent changes in the law.
Despite ongoing lawsuits from major pharmaceutical companies to halt the program, the administration has reaffirmed its intention to use all legal tools to expand coverage and reduce costs for millions of citizens.
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