Medicare to reduce prices of 15 drugs, including Ozempic

 

 

P.P. Cherian

Washington, D.C.: The U.S. health insurance program Medicare has decided to reduce the prices of 15 leading drugs. Ozempic and Wegovy, which are used for diabetes and weight loss, are included in this list.

The price reduction was made possible through the drug bargaining program launched under the Inflation Reduction Act introduced by President Joe Biden's administration.

Ozempic and Wegovy (type 2 diabetes, weight loss): Current list price reduced from $959 to $274. Trelegy Ellipta (asthma): Reduced from $654 to $175. Xtandi (prostate cancer): Reduced from $13,480 to $7,004. Pomalyst (chemotherapy): Reduced from $21,744 to $8,650.

Collectively, these 15 drugs account for 15% of Medicare Part D spending (about $42.5 billion).

The lower prices in this round will take effect in 2027. The first round of bargaining for 10 drugs, which will take effect in 2026, was completed earlier.

The price reductions are expected to save taxpayers $12 billion and Medicare beneficiaries $685 million in 2027.