Popular weight loss drugs could be cheaper for some Americans: What you need to know
Fifteen widely used medications- including two super-popular weight loss drugs – are part of Medicare’s next round of price negotiations, the federal government announced.
The Department of Health and Human Services through the Centers for Medicare and Medicaid Services will negotiate with manufacturers directly over the cost of the drugs covered under Medicare Part D, the agency announced last week. The directive is part of an effort by former President Biden and it’s unclear if the policies will continue under the Trump administration but, if they do, negotiations will occur this year and new prices will go into effect in 2027.
If successful, the result could be lower Medicare Part D prices for drugs used to create a variety of conditions, such as cancer, asthma, type 2 diabetes and weight loss – Ozempic, Rybelsus and Wegovy.
Other drugs included in the negotiations will be:
- Austedo and Austedo XR, used to treat Huntington’s disease.
- Breo Ellipta, a drug for COPD patients
- Calquence, a drug for cancer patients
- Ibrance, used to treat breast cancer
- Janumet; Janumet XR, drugs used to treat juvenile diabetes
- Linzess, a medication used for chronic constipation
- Ofev, a medication for idiopathic pulmonary fibrosis.
- Otezla, a psoriatic arthritis drug
- Pomalyst, a chemotherapy drug
- Tradjenta, a diabetes drug
- Trelegy Ellipta, for treating asthma
- Vraylar, an antipsychotic drug
- Xifaxan, medication for diarrhea and irritable bowel syndrome
- Xtandi, a medication used to treat prostate cancer
Between November 2023 and October 2024, about 5.3 million people with Medicare Part D coverage used these drugs, accounting for about $41 billion – about 14% – of the coverage’s gross prescription costs.
The first round of negotiations took place last year, resulting in lower prices for 10 target medications, including drugs to treat rheumatoid arthritis, health failure, diabetes, blood cancers, psoriasis and Crohn’s. Those new prices go into effect Jan. 1, 2026 and are expected to save some $6 billion, including some $1.5 billion in personal out-of-pocket costs.