The Trump administration has announced that Medicare will negotiate prices for 15 additional prescription drugs, a move aimed at lowering costs for seniors and taxpayers. The announcement marks the third round of Medicare drug price negotiations and expands the program to include some of the most expensive and widely used medications in the system.
Administration officials say the new negotiations could deliver significant savings when the lower prices take effect in 2028.
On January 27, the administration confirmed that 15 new drugs have been selected for Medicare’s drug price negotiation program. The program allows the federal government to negotiate directly with drug manufacturers over the prices Medicare pays.
CMS Administrator Dr. Mehmet Oz said the effort targets the most expensive drugs in Medicare and is designed to make the system work for patients rather than special interests. The government was required to release the list by February 1 under the law governing the program.
This round follows earlier negotiations that already covered 25 drugs, meaning a total of 40 medications will eventually have negotiated Medicare prices.
Why These Drugs Were Selected
The selected medications are among those on which Medicare spends the most money. According to CMS, about 1.8 million Medicare Part B and Part D enrollees used these drugs in the past year.
Together, the drugs account for roughly 6 percent of all Medicare Part B and Part D spending. Officials say focusing on high spending drugs increases the potential savings for taxpayers.
This is also the first time that drugs covered under Medicare Part B, which includes medications infused or injected in outpatient settings, are eligible for negotiation.
Which Drugs Are Included
The 15 drugs selected for negotiation treat a wide range of conditions, including Type 2 diabetes, HIV, arthritis, cancer, lung disease, depression, and autoimmune disorders.
The full list includes:
Ozempic and Rybelsus for diabetes are priced at $277 per month, while Wegovy for obesity is priced at $386 per month.
Trelegy Ellipta for lung conditions costs $175 per month.
Xtandi for prostate cancer costs $7,004 per month.
Pomalyst for blood cancer costs $8,650 per month.
Ibrance for breast cancer costs $7,871 per month.
Ofev for lung conditions costs $6,350 per month.
Linzess for gastrointestinal conditions costs $136 per month.
Calquence for blood cancers costs $8,600 per month.
Austedo and Austedo XR for neurological diseases cost $4,093 per month.
Breo Ellipta for lung conditions costs $67 per month.
Tradjenta for diabetes costs $78 per month.
Xifaxan for liver and gastrointestinal problems costs $1,000 per month.
Vraylar for depression costs $770 per month.
Janumet and Janumet XR for diabetes cost $80 per month.
Otezla for inflammatory conditions costs $1,650 per month.
Botox will only be negotiated for approved medical uses such as migraines and overactive bladder, not cosmetic treatments.
CMS also confirmed that the diabetes drug Tradjenta, which was previously negotiated, will undergo renegotiation.
How Prices Are Expected to Change
Exact future prices for the newly selected drugs have not yet been disclosed. However, earlier rounds of negotiation provide a sense of the potential impact.
For drugs negotiated in a prior round, CMS said Medicare would have saved $12 billion in a single year, reducing spending on those medications by 44 percent. Negotiated prices from earlier rounds are scheduled to take effect in 2027 and 2028.
While the savings primarily benefit Medicare itself, lower program spending is expected to reduce pressure on taxpayers over time.
Consumer advocates welcomed the announcement. AARP CEO Dr. Myechia Minter Jordan called the decision a significant step forward and said lowering drug prices remains a top priority for older Americans across the political spectrum.
CMS officials emphasized that the program reflects strong leadership and tougher negotiations aimed at delivering better outcomes than previous efforts.
The pharmaceutical industry sharply criticized the negotiation program and the law that created it. Industry leaders argue that government price setting is the wrong approach and claim policymakers should instead focus on insurers and pharmacy benefit managers.
Despite legal challenges from drug companies, the negotiation program has remained in place after court losses by the industry.
Negotiations with drug manufacturers will take place over the coming year, with the new prices scheduled to go into effect in 2028. The administration says this expansion builds on earlier efforts and signals a continued push to rein in high prescription drug costs within Medicare.
As additional rounds unfold, Medicare officials expect further savings while continuing to focus on drugs with the greatest impact on overall spending.
