The short answer: On January 1, 2027, Medicare's negotiated prices take effect for 15 more drugs, including Ozempic, Rybelsus and Wegovy, Trelegy Ellipta, Breo Ellipta, Janumet, Tradjenta, Linzess and Xtandi. CMS estimates people with Medicare drug coverage will save about $685 million in out-of-pocket costs. What you pay at the pharmacy still depends on your plan, so use Open Enrollment, which ends December 7, 2026, to make sure your plan covers your drugs well.
What Is Medicare Drug Price Negotiation?
The 2022 Inflation Reduction Act lets Medicare negotiate prices directly with drug companies for some of the costliest drugs in Part D. The first 10 negotiated prices started January 1, 2026. The second group of 15 drugs starts January 1, 2027. Negotiations for this group ended November 1, 2025. (Source: CMS fact sheet on 2027 negotiated prices.)
CMS says these 15 drugs made up about $42.5 billion, or about 15%, of Part D drug costs in 2024. About 5.3 million people with Medicare drug coverage filled a prescription for at least one of them, and they paid about $1.7 billion out of pocket.
The 15 Drugs and Their New Prices
The table shows the negotiated price for a 30-day supply in 2027 next to the 2024 list price, as published by CMS. These are not your copays. They are the prices Medicare plans and pharmacies work from. Your share is set by your plan.
| Drug | Commonly used for | 2027 negotiated price (30 days) | 2024 list price (30 days) | Discount |
|---|---|---|---|---|
| Ozempic, Rybelsus, Wegovy | Type 2 diabetes; heart disease; obesity or overweight | $274 | $959 | 71% |
| Trelegy Ellipta | Asthma; COPD | $175 | $654 | 73% |
| Xtandi | Prostate cancer | $7,004 | $13,480 | 48% |
| Pomalyst | Multiple myeloma; Kaposi sarcoma | $8,650 | $21,744 | 60% |
| Ofev | Idiopathic pulmonary fibrosis | $6,350 | $12,622 | 50% |
| Ibrance | Breast cancer | $7,871 | $15,741 | 50% |
| Linzess | Chronic constipation; IBS with constipation | $136 | $539 | 75% |
| Calquence | Chronic lymphocytic leukemia; mantle cell lymphoma | $8,600 | $14,228 | 40% |
| Austedo, Austedo XR | Huntington's disease chorea; tardive dyskinesia | $4,093 | $6,623 | 38% |
| Breo Ellipta | Asthma; COPD | $67 | $397 | 83% |
| Xifaxan | Hepatic encephalopathy; IBS with diarrhea | $1,000 | $2,696 | 63% |
| Vraylar | Bipolar I disorder; major depression; schizophrenia | $770 | $1,376 | 44% |
| Tradjenta | Type 2 diabetes | $78 | $488 | 84% |
| Janumet, Janumet XR | Type 2 diabetes | $80 | $526 | 85% |
| Otezla, Otezla XR | Psoriasis; psoriatic arthritis; Behçet's disease mouth ulcers | $1,650 | $4,722 | 65% |
(Source: CMS, Negotiated Prices for Initial Price Applicability Year 2027. List prices are wholesale prices for 2024. Prices for some package sizes differ; for example, CMS lists the Wegovy 2.4 mg four-pen package at $385.63.)
Will I Pay Less at the Pharmacy?
Maybe, but it depends on your plan. Here is what to know:
- Your plan sets your copay or coinsurance. If you pay a percentage of the drug's price (coinsurance), a lower price can mean a lower bill. If you pay a flat copay, you may not see a change.
- Plans must cover these drugs. CMS requires Medicare drug plans to include the selected drugs on their formularies. (Source: CMS.)
- The savings run behind the scenes. Drug companies must make the negotiated price available to pharmacies. Since January 2026, a Medicare system called the Medicare Transaction Facilitator helps send refunds from drug makers to pharmacies. You do not need to sign up for anything. (Source: CMS pharmacy fact sheet.)
- Wegovy coverage has limits. Medicare drug plans cannot cover drugs used only for weight loss. CMS lists Wegovy for heart disease and obesity or overweight. Ask your plan how it covers Wegovy for your situation.
Other 2027 Part D Numbers to Know
- Out-of-pocket cap: $2,400 in 2027, up from $2,100 in 2026. Once you reach it, you pay nothing more for covered drugs that year. Premiums do not count toward it.
- Highest standard deductible: $700 in 2027, up from $615 in 2026. Many plans charge less.
(Source: CMS 2027 Rate Announcement.) If big drug bills early in the year are a worry, ask your plan about the Medicare Prescription Payment Plan. It spreads your drug costs into monthly payments. It does not lower the total you owe.
What About the First 10 Drugs?
Negotiated prices for Eliquis, Jardiance, Xarelto, Januvia, Farxiga, Entresto, Enbrel, Imbruvica, Stelara and NovoLog/Fiasp began January 1, 2026. CMS's program page also lists Stelara, Entresto, Xarelto and NovoLog/Fiasp as leaving the program effective January 1, 2027, because generic or biosimilar competition is arriving. If you take one of these, ask your pharmacist or plan whether a lower-cost version is available to you in 2027. (Source: CMS selected drugs and negotiated prices.)
What Comes Next
On November 5, 2026, CMS issued a final rule that sets lasting rules for the program. It says CMS will pick up to 20 more drugs, which can include Part B drugs given in a doctor's office, by February 1, 2027. The rule also says plans must list drugs with a negotiated price on their formularies. (Source: CMS press release.)
Your To-Do List Before December 7
- Make a list of every drug you take, with the dose.
- Check your plan's 2027 drug list in your Annual Notice of Change, or use the plan finder at Medicare.gov.
- Compare at least two other plans using your real drug list. Read what is changing in Medicare for 2027, and if your plan is leaving, see what to do if your Medicare Advantage plan is ending.
- Get free, unbiased help from a SHINE counselor. Our guide to free Medicare help in Florida explains what to bring.
- See if you qualify for Extra Help or a Medicare Savings Program, which can cut drug and premium costs for people with limited income.
Watch Out for "Drug Price" Scams
Scammers use news like this to call people about "new Medicare drug cards" or "refunds." Medicare will not call you to ask for your Medicare number, and you do not need a new card to get negotiated prices. Read our Medicare scam alert for Florida seniors.
Where to Get Free Help
- Florida SHINE and the Elder Helpline: 1-800-96-ELDER (1-800-963-5337)
- 1-800-MEDICARE (1-800-633-4227), 24 hours a day
- Your pharmacist: ask whether a generic, biosimilar or lower-cost option is covered by your plan
- Local help: browse senior health programs in Florida and our senior resource directory
For the rest of your 2027 Medicare costs, see the 2027 Part B premium estimate.
Disclaimer: This article is for informational purposes only and does not constitute medical, financial, or legal advice. Readers should consult a qualified healthcare provider for medical concerns, a financial advisor for financial planning, and an attorney for legal matters. The resources and programs mentioned are subject to eligibility requirements and availability, which may vary. While we strive for accuracy, the information provided may not reflect the most recent updates. Always verify details with official sources or professionals before making decisions based on this content.