Latest round of Medicare prescription drug price cuts announced

The Trump administration announced new lower Medicare prices for 15 prescription drugs that were part of the latest round of price negotiations.

The medications include the drugs Medicare spends the most on, such as popular GLP-1 medications Ozempic and Wegovy, as well as widely used cancer and diabetes drugs and inhalers. The negotiated prices are what the government pays, not what patients pay out of pocket.

The prices will take effect in 2027, and are expected to save Medicare enrollees $685 million in out-of-pocket costs, according to the Centers for Medicare and Medicaid Services.

The negotiated savings range from 38% to 85% off the drugs’ list prices.

However, it's difficult to determine the true savings on each drug, since Medicare already receives confidential savings and discounts from manufacturers and drug middlemen.

The Medicare drug price negotiation program is part of the Inflation Reduction Act, passed in Congress and signed into law by President Joe Biden in 2022.

Here are the negotiated prices for the drugs, based on a 30-day supply, compared to the 2024 list price:

• Ozempic, Rybelsus and Wegovy, for Type 2 diabetes and weight loss: $274, down from $959.
• Trelegy Ellipta, an asthma inhaler: $175, down from $654.
• Xtandi, for prostate cancer: $7,004, down from $13,480.
• Pomalyst, a chemotherapy drug: $8,650, down from $21,744.
• Ofev, for idiopathic pulmonary fibrosis: $6,350, down from $12,622.
• Ibrance, a breast cancer drug: $7,871, down from $15,741.
• Linzess, a chronic constipation drug: $136, down from $539.
• Calquence, a cancer drug: $8,600, down from $14,228.
• Austedo and Austedo XR, for Huntington’s disease: $4,093, down from $6,623.
• Breo Ellipta, an inhaler for COPD: $67, down from $397.
• Xifaxan, for diarrhea and irritable bowel syndrome: $1,000, down from $2,696.
• Vraylar, an antipsychotic drug: $770, down from $1,376.
• Tradjenta, a diabetes drug: $78, down from $488.
• Janumet and Janumet XR, diabetes drugs: $80, down from $526.
• Otezla, for psoriatic arthritis: $1,650, down from $4,722.