How and when Americans will see Medicare’s drug price reductions
On Tuesday, the Trump administration announced price reductions for 15 prescription drugs covered by Medicare. While the reductions won’t take effect until 2027, the administration said Medicare recipients will save substantially on prescriptions.
The prescription price cuts come from the Medicare price negotiation program former President Joe Biden created with his Inflation Reduction Act in 2022. These latest reductions follow last year’s, when Biden negotiated lower prices for 10 drugs with pharmaceutical companies.
“President Trump directed us to stop at nothing to lower health care costs for the American people,” Health and Human Services Secretary Robert F. Kennedy Jr. said in a statement. “As we work to Make America Healthy Again, we will use every tool at our disposal to deliver affordable health care to seniors.”
What drugs does this affect?
The price reductions impact drugs that treat severe chronic diseases like Huntington’s disease and several forms of cancer. According to the Centers for Medicare & Medicaid Services, about 5.3 million Medicare beneficiaries used these medications in 2024.
Pfizer’s breast cancer therapy Ibrance is included in the reductions and was used by 16,000 Medicare Part D beneficiaries last year. Novo Nordisk’s weight-loss and diabetes drugs Ozempic, Rybelsus and Wegovy are also on the list.
Trump previously announced a deal with the government and Novo Nordisk to lower the cost of Ozempic.
Under the drug negotiation program, companies can choose to walk away but it would cut them off from one of the largest markets in the country.
How much is the reduction?
The reduction is expected to save those with Medicare prescription drug coverage an estimated $685 million in total, according to the MMS.
The reductions range from 38% to 85%. With some drugs costing thousands of dollars less than the list price.
Older Americans have raised concerns about the rising costs of prescription drugs, according to AARP. About 2-in-5 adults 50 and older are concerned about their ability to afford prescription drugs in the next few years.
Several drugs have seen dramatic price increases. AARP said prescription drugs increase in price the longer they stay on the market. One example is the irritable bowel disease drug Xifaxan, which has been available since 2004. Its price has increased 253% since then.
The federal government previously announced 10 other drug cost reductions, which will begin in 2026. These include drugs like Imbruvica, reduced by 38%; Stelara, reduced by 66%; and Januvia, reduced by 79%.
The post How and when Americans will see Medicare’s drug price reductions appeared first on Straight Arrow News.
Ella Rae Greene, Editor In Chief
