Chicago – November 27, 2025
Medicare will save approximately $12 billion, or 44%, on 15 high-cost medications as a result of the second round of the program’s drug price negotiations, the Trump administration announced Tuesday evening. The savings are estimated based on what Medicare spent on the medicines last year.
Medicare enrollees are expected to save $685 million on out-of-pocket costs when the prices take effect in 2027.
Ozempic and Wegovy, the blockbuster but costly GLP-1 drugs often used for weight loss and diabetes treatment, are among the medications that were selected for the second round by the Biden administration just days before it left office. The negotiated price for 2027 ranges from $277 for Ozempic to $386 for Wegovy.
However, manufacturer Novo Nordisk announced a broader deal this month to sell the medicines to Medicare for $245. That agreement includes expanding Medicare and Medicaid coverage of the drugs for obesity.
Overall, the 15 medicines were used by about 5.3 million Medicare enrollees in 2024 and treat a variety of diseases, including asthma, cancer and diabetes. They accounted for $42.5 billion in prescription drug costs in 2024, before factoring in discounts and rebates that Medicare already receives.
Under the Medicare drug benefit program in effect in 2024, prior to the Inflation Reduction Act redesign, the savings would have been $8.5 billion or 36%.
