2027 Will Bring Lower Prices for 15 Medicare Part D Drugs

Takeaways

• Lower prescription drug prices will begin in 2027. The cost of 15 high-priced Medicare Part D drugs, used to treat conditions such as cancer and diabetes, will be significantly lower starting in 2027.
• Expect significant savings. These price cuts are projected to save Medicare patients about $685 million in out-of-pocket costs.
• Common medications will be included. The list of 15 drugs covers treatments for major chronic conditions, including Ozempic, Trelegy Ellipta, Xtandi, and others.
• Part of a larger program of negotiations. This is the second group of medications negotiated under the Inflation Reduction Act. By 2027, a total of 25 drugs will have negotiated prices, with more expected in future years.

After waiting almost a year, Medicare recipients who are enrolled in Medicare Part D now know how much they will be paying for the 15 drugs whose lower prices were negotiated this year. Throughout 2025, the Centers for Medicare & Medicaid Services (CMS) worked with the manufacturers of the 15 drugs to rein in the high prices Medicare enrollees were paying.

Major Price Cuts for 15 Medicare Drugs

In November 2025, CMS announced the new, lower prices for 15 high-cost prescription drugs covered under Medicare Part D, which was a result of the second round of price negotiations under the Inflation Reduction Act. The negotiated maximum fair prices (MFPs) will take effect January 1, 2027.

According to CMS, these 15 drugs were selected for negotiation because they account for a significant portion (about 15 percent) of Medicare Part D spending, to the tune of about $42.5 billion in 2024. CMS reports that during 2024 about 5.3 million Medicare Part D enrollees used these drugs to treat a variety of conditions, including cancer, asthma, and diabetes.

When the new prices take effect, CMS projects a net savings of about 44 percent compared with 2024 spending, amounting to roughly $12 billion in federal savings and about $685 million in out-of-pocket savings for Medicare beneficiaries.

This announcement marks a major milestone in implementing the Medicare Drug Price Negotiation Program and promises significant cost relief for seniors and disabled people on Medicare who rely on expensive chronic-disease and cancer medications.

Which Drugs Are Getting Cheaper in 2027?

The 15 drugs selected in this second round of negotiations whose Medicare Part D prices will be reduced starting in 2027 include:

• Ozempic, Rybelsus, Wegovy: Type 2 diabetes, Type 2 diabetes and cardiovascular disease, obesity/overweight and cardiovascular disease
• Trelegy Ellipta: Asthma, chronic obstructive pulmonary disease
• Xtandi: Prostate cancer
• Pomalyst: Kaposi sarcoma, multiple myeloma
• Ibrance: Breast cancer
• Ofev: Idiopathic pulmonary fibrosis
• Linzess: Chronic idiopathic constipation, irritable bowel syndrome with constipation
• Calquence: Chronic lymphocytic leukemia/small lymphocytic lymphoma, mantle cell lymphoma
• Austedo, Austedo XR: Chorea in Huntington’s disease, tardive dyskinesia
• Breo Ellipta: Asthma, chronic obstructive pulmonary disease
• Tradjenta: Type 2 diabetes
• Xifaxan: Hepatic encephalopathy, irritable bowel syndrome with diarrhea
• Vraylar: Bipolar I disorder, major depressive disorder, schizophrenia
• Janumet, Janumet XR: Type 2 diabetes
• Otezla, Otezla XR: Oral ulcers in Behçet’s disease, plaque psoriasis, psoriatic arthritis

What This Means

• Lower prescription drug costs in 2027. When the MFPs take effect, Medicare and its beneficiaries will pay significantly less for these drugs. According to CMS, the negotiated prices reflect a roughly 44 percent overall reduction for this group of drugs.
• Savings for both taxpayers and patients. CMS estimates that taxpayers will save about $12 billion. In addition, Medicare Part D enrollees who need the drugs will save about $685 million in out-of-pocket costs.
• Continued expansion of price negotiations. This is the second round of medication price negotiations to yield lower prices for Medicare Part D recipients. Combined with 10 drugs from the first round (taking effect in 2026), a total of 25 drugs will be under negotiated pricing. Future negotiation rounds will bring still more lower prices for drugs.
• Potential effects for those with chronic conditions. Many of the 15 drugs treat cancer, diabetes, respiratory disease, or chronic conditions, so the price reductions could benefit a large group of Medicare beneficiaries who rely on costly ongoing treatments.

Why This Matters

The announcement underscores how the Medicare Drug Price Negotiation Program, enabled by the Inflation Reduction Act, is beginning to deliver on long-promised cost savings for seniors and people with disabilities. It shows tangible movement toward reining in the high cost of prescription drugs, especially for expensive, single source medications with no generic or biosimilar competition.

Reducing the cost burden of such drugs may improve access for many Medicare enrollees, help limit out-of-pocket costs, and reduce pressure on the Medicare system overall. As the program expands to include more drugs in future cycles, the effects could grow significantly.

The success of the Medicare Drug Price Negotiation Program also sends a signal across the broader health care market. By focusing initially on expensive, single-source medications, the program aims to curb costs where competition from generic drugs is currently absent. This systemic pressure could speed up the creation of generic or biosimilar options and help restrict price increases across the entire pharmaceutical industry, ultimately helping all patients, not just those with Medicare Part D.

Additional Reading

For additional reading on topics related to Medicare, check out the following articles:

• Turning 65? What to Know About the 4 Parts of Medicare
• Do Medigap Plans Cover the Medicare Part B Deductible?
• Getting the Medicare Grocery Allowance for Seniors
• Medicare Coverage Basics: What You Need to Know
• Medicare Advantage (Medicare Part C Coverage) Plans