August 7, 2026
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Medicare Lower cost drugs for 2027
Medicare has completed negotiations for 15 additional Part D drugs, and the negotiated prices take effect January 1, 2027. These are in addition to the first 10 negotiated drugs whose prices began in 2026. CMS calls the negotiated amount the Maximum Fair Price (MFP).
Here are the 15 drugs and CMS’s negotiated price for an estimated 30-day supply:
| Drug | Common use | 2027 negotiated price | 2024 list price | Reduction |
|---|---|---|---|---|
| Ozempic / Rybelsus / Wegovy | Diabetes, cardiovascular risk, obesity | $274 | $959 | 71% |
| Trelegy Ellipta | COPD, asthma | $175 | $654 | 73% |
| Xtandi | Prostate cancer | $7,004 | $13,480 | 48% |
| Pomalyst | Multiple myeloma | $8,650 | $21,744 | 60% |
| Ofev | Pulmonary fibrosis | $6,350 | $12,622 | 50% |
| Ibrance | Breast cancer | $7,871 | $15,741 | 50% |
| Linzess | IBS/constipation | $136 | $539 | 75% |
| Calquence | Leukemia/lymphoma | $8,600 | $14,228 | 40% |
| Austedo / Austedo XR | Tardive dyskinesia, Huntington’s chorea | $4,093 | $6,623 | 38% |
| Breo Ellipta | COPD, asthma | $67 | $397 | 83% |
| Xifaxan | IBS-D, hepatic encephalopathy | $1,000 | $2,696 | 63% |
| Vraylar | Bipolar disorder, 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 | $1,650 | $4,722 | 65% |
The big one: Ozempic, Wegovy and Rybelsus
This is probably the most significant change for many Medicare beneficiaries. CMS negotiated a $274 30-day price, compared with a 2024 list price of approximately $959 — a 71% reduction. CMS treats Ozempic, Rybelsus and Wegovy as one selected drug because they contain the same active ingredient, semaglutide.
However, the negotiated price does not mean every Medicare member will pay $274 at the pharmacy. The member’s actual cost depends on the Part D plan’s deductible, copayment/coinsurance structure, where they are in the Part D benefit, and whether Medicare covers the drug for the prescribed indication.
What this means for Medicare beneficiaries
Medicare Part D plans and Medicare Advantage plans with drug coverage generally must include these selected negotiated drugs on their formularies. The manufacturer must make the negotiated price available for eligible Medicare prescriptions beginning January 1, 2027.
CMS estimates that about 5.3 million Medicare Part D beneficiaries used one of these 15 drugs in 2024. CMS projects that the negotiated prices could save Part D beneficiaries approximately $685 million in out-of-pocket costs during 2027 under the standard Part D benefit.
One important distinction for clients: “71% lower negotiated price” does not necessarily mean a client’s copay falls by 71%. The negotiated price reduces the underlying drug cost; the individual savings will vary depending on the particular 2027 Part D or Medicare Advantage plan.
For a Medicare broker, Ozempic/Wegovy/Rybelsus, Trelegy, Linzess, Breo, Tradjenta and Janumet are especially worth highlighting during the 2027 enrollment season because of their high utilization and large negotiated reductions.
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