On November 25, 2025, the Centers for Medicare & Medicaid Services (CMS) announced significant price reductions for 15 high-cost prescription drugs used by millions of Medicare beneficiaries. That’s a major win for older Americans.
The negotiated “maximum fair prices,” made possible by the 2022 Inflation Reduction Act, promise to save the program $12 billion annually compared with last year’s Medicare spending on 15 widely used drugs to treat cancer and other serious chronic conditions that hit older adults hardest.
Previously, the Biden administration reached deals to lower the costs of 10 prescription drugs, including several for heart disease and diabetes, which are set to take effect in 2026. This latest round of price negotiations will go into effect in 2027, with seniors expected to see an estimated $685 million in out-of-pocket relief.
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Historically, prescription drug costs have wreaked havoc on many seniors’ budgets, with some rationing doses or skipping their meds altogether due to high costs, according to a survey by research group KFF.
For the roughly 5.3 million Medicare beneficiaries who take these 15 medications, and the new $2,100 annual out-of-pocket cap in Medicare Part D, starting in 2026, 2027 can’t come soon enough.
For decades, Medicare was prohibited by law from negotiating drug prices directly with manufacturers, resulting in older Americans paying two to four times what patients in Europe or Canada paid for the same medicines.
Below is the full list of the 15 drugs and their new Medicare maximum fair prices compared with the 2024 list prices. All figures are for a typical 30-day supply. The numbers are rounded to the nearest dollar where applicable.
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Drug Name
Commonly Treated Conditions
2024 List Price
2027 Medicare Price
% Reduction
Ozempic; Rybelsus; Wegovy
Type 2 diabetes; Type 2 diabetes & cardiovascular disease; Cardiovascular disease & obesity/overweight
$959
$274
-71%
Trelegy Ellipta
Asthma; Chronic obstructive pulmonary disease
$654
$175
-73%
Xtandi
Prostate cancer
$13,480
$7,004
-48%
Pomalyst
Kaposi sarcoma; Multiple myeloma
$21,744
$8,650
-60%
Ofev
Idiopathic pulmonary fibrosis
$12,622
$6,350
-50%
Ibrance
Breast cancer
$15,741
$7,871
-50%
Linzess
Chronic idiopathic constipation; irritable bowel syndrome with constipation
$539
$136
-75%
Calquence
Chronic lymphocytic leukemia/small lymphocytic lymphoma; Mantle cell lymphoma
$14,228
$8,600
-40%
Austedo; Austedo XR
Chorea in Huntington’s disease;
Tardive dyskinesia
$6,623
$4,093
-38%
Breo Ellipta
Asthma; Chronic obstructive pulmonary disease
$397
$67
-83%
Xifaxan
Hepatic encephalopathy; Irritable bowel syndrome with diarrhea
$2,696
$1,000
-63%
Vraylar
Bipolar 1 disorder; Major depressive disorder; Schizophrenia
$1,376
$770
-44%
Tradjenta
Type 2 diabetes
$488
$78
-84%
Janumet; Janumet XR
Type 2 diabetes
$526
$80
-85%
Otezla; Otezla XR
Oral ulcers in Behçet’s Disease; Plaque psoriasis; Psoriatic arthritis
$4,722
$1,650
-65%
The “2024 List Price” column shows the gross Wholesale Acquisition Cost (WAC) that Medicare Part D plans were charged in 2024 for a 30-day supply, before any rebates or discounts.
The “2027 Medicare Price” column is the Maximum Fair Price (MFP) manufacturers must offer Medicare starting January 1, 2027, for a 30-day supply.
Sources: CMS, November 2025 (pdf); Medicare prescription drug affordability fact sheet; Medicare Drug Price Negotiation Program: Negotiated Prices for Initial Price Applicability, Year 2027 (pdf)
List prices reflect typical Part D gross costs before rebates.
