Medicare Drug Price Negotiation: Which Drugs Cost Less and When

Medicare now negotiates prices directly with drugmakers for some of its most expensive drugs. The first 10 lower prices took effect January 1, 2026. Fifteen more, including Ozempic and Wegovy, start January 1, 2027.

How it works

Under the Inflation Reduction Act, Medicare picks high-spending drugs, negotiates a "maximum fair price" with the maker, and that price takes effect on January 1 of a set year. The lower price is what your Part D plan pays. What you pay at the counter still depends on your plan's deductible and copays, so your savings may be smaller or larger than the headline discount.

Round 1: prices in effect now (2026)

Round 2: starting January 1, 2027

Ozempic's negotiated price works out to about $274 a month, down from a $959 list price. Medicare expects to save about $12 billion, and people on Medicare about $685 million out of pocket.

Round 3: chosen for 2028

These 15 were selected in January 2026, and for the first time the list includes drugs given in a doctor's office (Part B):

Anoro Ellipta, Biktarvy, Botox, Cimzia, Cosentyx, Entyvio, Erleada, Kisqali, Lenvima, Orencia, Rexulti, Trulicity, Verzenio, Xeljanz and Xolair. Prices haven't been announced yet; negotiations wrap up this fall.

Your yearly drug cost cap

Even without negotiation, Part D now caps what you pay for covered drugs each year:

What to do now

• If you take a drug on the 2027 list, check how your plan covers it during open enrollment (Oct. 15 – Dec. 7).
• Ask about the Medicare Prescription Payment Plan, which spreads your costs into monthly bills.

Sources: U.S. Pharmacist, AMCP, AARP, CMS 2028 selections, Kiplinger, Humana.