Will Ozempic and other cancer drugs be available at half the price in the US starting in 2027? How did Medicare make the major decision to reduce the prices of 15 expensive drugs, what were the pressures behind it, and what mysterious relief will this bring to millions of seniors?

US Medicare Price Cuts: In a historic move, US Medicare has announced significant price cuts on 15 highly expensive and popular prescription drugs. These include GLP-1 weight-loss drugs like Ozempic and Wegovy, cancer drugs like ExXtandi and Pomalyst, respiratory medications like Trelegy Ellipta, and diabetes, neurology, and gastro medications. These price cuts will take effect in January 2027, providing direct drug cost relief to millions of older Americans and saving US taxpayers billions of dollars.

How was the price cuts decided?

The new rates are the result of the negotiation power granted to Medicare under the Inflation Reduction Act. This is the second phase in which the government negotiated directly with Big Pharma companies and secured significant price reductions. According to CMS, these 15 drugs alone were dependent on more than 5 million patients in 2024, and their costs were constantly rising.

Who will benefit the most?

Healthcare costs in the US have been rising steadily for years, especially regarding certain medications, without which treatment becomes difficult. Now, for the first time, the US government has taken such a major decision, which will provide significant relief to millions of elderly people. The government says that millions of elderly patients will have to spend less on medicines, and taxpayers will save billions of dollars. These prices have been decided after negotiations under the Inflation Reduction Act. This law has, for the first time, empowered Medicare to negotiate directly with pharmaceutical companies.

Which medicines will be cheaper? Is your medicine on this list?

The new price list includes 15 of America's most expensive and best-selling drugs:

• Ozempic, Wegovy (GLP-1 drugs, used for diabetes and weight loss)
• Xtandi, Pomalyst, Ibrance (cancer treatments)
• Trelegy Ellipta, Breo Ellipta (breathing and lung medications)
• Tradjenta, Janumet, Janumet XR (diabetes drugs)
• Austedo, Austedo XR (neurological disorders)
• Linzess, Xifaxan (gastrointestinal medications)
• Otezla, Calquence (specialty medications)

Nearly 5 million Medicare patients used these medications in 2024 alone. So the impact of this change is going to be huge.

Why are drug prices suddenly being reduced? What is the real reason?

Weight loss drugs like Ozempic and Wegovy have become extremely popular in the United States. Today, more than 16 million Americans take them. High demand, high prices, and high profits—these three factors have driven drug costs into the thousands of dollars. The government has been under constant pressure, as the elderly and middle class are suffering from high drug costs. This led Medicare to negotiate directly with Big Pharma for the first time, forcing them to reduce prices.

How did these prices come down? Will Big Pharma suffer losses?

Medicare now has complete authority to set prices. This was never the case previously – drug companies alone dictated prices. Now, under the Inflation Reduction Act, the government can negotiate directly with pharmaceutical companies. If necessary, it can pressure them to reduce prices and impose heavy taxes on companies for overpricing. CMS (Centers for Medicare and Medicaid Services) estimates that price reductions on these 15 drugs will save the government approximately $12 billion.

Are pharmaceutical companies scared? Why is there controversy?

Many companies claim this will impact research into new drugs. However, health experts say that life-saving medications must be affordable. This decision could also mark the beginning of a drug price war in the US.

Could Americans' drug spending be cut in half by 2027?

While every drug won't necessarily be half-priced, it's certain to significantly reduce Medicare patient costs. This move is expected to provide direct relief to the elderly, savings to families, and reduce pressure on the healthcare system.

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