15 More Drugs Chosen for Medicare Price Negotiations

The Centers for Medicaid and Medicare Services (CMS) announced Friday, Jan. 17, it has chosen 15 drugs, including the popular weight-loss drugs Ozempic and Wegovy, for the second round of price negotiations between Medicare and drugmakers.

The negotiations, authorized under the Inflation Reduction Act of 2022, are aimed at making health care more affordable for Americans. The first round of negotiations under the act led to reduced prices for 10 drugs that will go into effect Jan. 1, 2026, for people enrolled in Medicare Part D.

The drugs chosen for the second round of price negotiations are:

• Ozempic, Rybelsus, and Wegovy, all GLP-1 agonists, a class of medication initially developed to treat diabetes but often used for weight loss
• Trelegy Ellipta, used to treat chronic obstructive pulmonary disease and asthma
• Xtandi, used to treat prostate cancer
• Pomalyst, used to treat multiple myeloma and AIDS-related Kaposi sarcoma
• Ibrance, used to treat breast cancer
• Ofev, used to treat lung disease
• Linzess, used to treat irritable bowel syndrome and chronic constipation
• Calquence, used to treat lymphoma
• Austedo and Austedo XR, used to treat tardive dyskinesia and Huntington’s disease
• Breo Ellipta, used to treat chronic obstructive pulmonary disease and asthma
• Tradjenta, used to treat type 2 diabetes
• Xifaxan, used to treat irritable bowel syndrome and traveler’s diarrhea
• Vraylar, used to treat bipolar disorder and major depressive disorder
• Janumet and Janumet XR, used to treat type 2 diabetes
• Otezla, used to treat psoriasis and psoriatic arthritis

The makers of the drugs will have until Feb. 28 to decide whether to participate in negotiations. They will then be able to submit data on the drugs for CMS to consider, including clinical benefits and costs associated with research, development, production, and distribution. The negotiations will occur this year, with any agreed-upon prices taking effect in 2027 — barring any changes that could occur under incoming President Donald Trump.

CMS estimates that in 2026, people with Medicare Part D coverage will see aggregated estimated savings of $1.5 billion in their personal out-of-pocket costs because of the reduced prices resulting from the first round of negotiations.

GLP-1 agonists have become popular as a means of controlling weight, but their high prices keep them out of reach for many. Medicare does not currently cover drugs for weight loss, although it can cover GLP-1 agonists if they are prescribed for other purposes. The Biden administration has proposed requiring Medicare to cover drugs used to treat obesity, in light of the growing medical recognition of obesity as a disease.

For more on weight-loss drugs, see our blog series.