Individuals covered under Medicare can expect significant savings on the 15 drugs that were selected earlier this year for drug price negotiations under the Inflation Reduction Act starting in 2027.
While the drugs subject to negotiation were announced in January, CMS just released the extent of the discounts.
The drug with the highest percentage reduction from its 2024 list price — 85% — is Merck’s (MRK) type 2 diabetes medication, Janumet (sitagliptin/metformin), which will now cost $80 for a one-month supply. CMS spent ~$1.1B on the medicine in 2024.
In 2024, CMS spent the most money — ~$15.1B — on Novo Nordisk (NVO) diabetes and weight loss medicines Ozempic, Wegovy, and Rybelsus, which all contain the active ingredient semaglutide. The drugs will now cost $274 a month, down from $959 previously, a discount of about 71%.
Other CMS high-spend drugs that will come down in price in 2027 for a 30-day supply include GSK’s (GSK) Trelegy Elipta (fluticasone/umeclidinum/vilanterol) at $175 (-73%); Bristol Myers Squibb’s (BMY) Pomalyst (pomalidomide) at $8650 (-60%); AbbVie’s (ABBV) Linzess (linaclotide) at $136 (75%); Pfizer’s (PFE) Ibrance (palbociclib) at $7871 (-50%); and AstraZeneca’s (AZN) Calquence (acalabrutinib) at $8600 (-40%).