The Trump administration announced major Medicare savings this week as federal officials secured lower prices for 15 widely used prescription drugs. The announcement signals a deeper push to cut drug costs for seniors and taxpayers, and the administration framed the effort as a key step toward expanding Medicare savings across the health system.
Officials detailed the new prices after months of direct negotiations with major pharmaceutical companies. The talks took place under a federal law that authorizes Medicare to negotiate costs for popular and expensive drugs. The Biden administration launched the program last year, and the Trump administration expanded it with a second round of negotiations.
Health Secretary Robert F. Kennedy Jr. said the reduced prices support the administration’s effort to address affordability concerns. He said President Trump demanded aggressive action to lower health care costs for older Americans. Kennedy also said the negotiated reductions will create meaningful Medicare savings that benefit seniors across the country.
The latest round brings the total number of negotiated drug prices to 25. The new prices will take effect in 2027, while reductions for the first set of 10 drugs will begin early next year. Federal officials said the new deals would have generated about $8.5 billion in savings if they had applied last year.
The negotiated drugs include top-selling GLP-1 treatments like Ozempic, Wegovy, and Rybelsus. These medications treat diabetes and support weight-loss therapy. The list also includes drugs for asthma, arthritis, irritable bowel syndrome, and several cancers. Administration officials said the new agreements deliver stronger outcomes than the previous year’s negotiations.
Dr. Mehmet Oz, who leads the Centers for Medicare and Medicaid Services, said the program produced substantial improvements for both seniors and taxpayers. He said the administration used lessons from last year to improve the negotiation process and secure stronger concessions.
Experts noted that patients will not always see the negotiated net prices at pharmacy counters. Individual plans, Medicare spending levels, and the structure of each drug plan will influence final out-of-pocket costs. A new rule that began this year caps annual drug spending for Medicare enrollees at $2,000. Officials estimate that the cap will reduce out-of-pocket costs by more than $600 million this year.
The administration also announced a pilot program that expands access to GLP-1 weight-loss drugs for high-risk patients. Medicare normally excludes weight-loss treatments, but the pilot creates new options for qualified individuals.
Pharmaceutical companies continue to challenge the negotiation program in court. Industry leaders argue that government price-setting threatens long-term medical innovation and reduces investment in new treatments.
Medicare will negotiate another 15 drugs next year. The new round will include physician-administered treatments for the first time. Federal officials expect the next stage to further reshape the Medicare drug market and deepen consumer protections.
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