Negotiated cuts as high as 71% could save patients an estimated $685 million a year on popular weight-loss and diabetes drugs.
Medicare has negotiated steep price reductions on drugs like Ozempic and Wegovy, with discounts reaching up to 71%.
The changes, starting in 2027, are projected to save patients around $685 million annually.
Medicare officials have secured major price concessions on blockbuster drugs such as Ozempic and Wegovy, part of an effort to lower prescription costs for older Americans. The negotiated discounts, which can reach up to 71%, are scheduled to take effect in 2027 and will apply across a wide range of eligible beneficiaries.
The two drugs, used for type 2 diabetes and weight loss, have become some of the most sought-after prescriptions in the United States, but their high list prices have put them out of reach for many. Patient advocates have pushed for aggressive negotiations, arguing that public programs should be able to leverage their size to reduce costs.
Early estimates suggest the new pricing could save patients roughly $685 million a year in out-of-pocket expenses, easing the strain on retirees and people with chronic conditions. The move is also expected to have ripple effects across the broader pharmaceutical market as insurers, employers and pharmacy benefit managers reassess their own contracts.
Drugmakers, however, warn that deep mandated discounts could curb investment in future research and limit incentives to develop novel therapies. The clash sets up a broader policy debate over how to balance affordability, innovation and the long-term sustainability of government health programs.
