Medicare Drug Price Negotiation 2027: The 15 Drugs With Lower Prices Starting January 1

What is Medicare drug price negotiation?

Medicare drug price negotiation lets Medicare agree on a lower price directly with drug companies for some high-cost drugs. The Inflation Reduction Act of 2022 set up the program. It covers brand-name drugs that have no generic or biosimilar (a close copy of a biologic drug) competing with them.

The Centers for Medicare & Medicaid Services (CMS) runs it in rounds:

• First round: prices for 10 drugs, including Eliquis, Jardiance and Januvia, took effect January 1, 2026.

• Second round: prices for 15 drugs take effect January 1, 2027. These are the drugs on this page.

• Third round: CMS is negotiating 15 more drugs in 2026, covered by Part B or Part D. Any new prices start in 2028.

CMS and the drug companies agreed on prices for all 15 drugs in the second round by November 1, 2025. The law calls them "maximum fair prices."

If you have a Medicare Advantage plan with drug coverage, see what's changing in Medicare Advantage for 2027.

The 15 drugs with negotiated prices from January 1, 2027

CMS counts Ozempic, Rybelsus and Wegovy as one drug, because all three contain semaglutide.

COPD is chronic obstructive pulmonary disease, and IBS is irritable bowel syndrome. Chorea and tardive dyskinesia are movement disorders, and some medicines can cause tardive dyskinesia.

What the negotiated prices are

CMS published the negotiated price of each drug for a 30-day supply. Here are some of the drugs people take most often, next to the drug's 2024 list price.

CMS raises each price once a year in line with inflation.

What it means for what you pay

A lower negotiated price may lower what you pay, but the effect depends on your plan. If you pay coinsurance (a percentage of the drug's price), your cost may drop. If you pay a flat copay, it may stay the same.

• Savings overall: CMS estimates people with Part D will save about $685 million in out-of-pocket costs in 2027. In 2024, about 5.3 million people with Part D used these drugs and paid $1.7 billion out of pocket for them.

• On your plan's list: Medicare drug plans, both stand-alone and Medicare Advantage plans with drug coverage, must include these drugs on their drug lists.

• Your yearly cap: in 2027, the most you'll pay out of pocket for covered Part D drugs is $2,400. Once you reach it, you pay $0 for covered drugs for the rest of the year. The highest deductible a plan can charge is $700.

• Wegovy for weight loss: if you qualify, you pay $50 a month for Wegovy through the Medicare GLP-1 Bridge. That $50 doesn't count toward your Part D cap. The Bridge runs from July 1, 2026, to December 31, 2027. The rules are in our guide to Medicare GLP-1 coverage.

To see your own cost, check the drug on your plan's 2027 drug list, with its tier and copay. Medicare Part D in 2027 covers tiers, deductibles and the cap in more detail.

Managing these drugs by telehealth

Many of these drugs treat long-term conditions, like type 2 diabetes, COPD and IBS. They usually need regular renewals. A renewal is a new prescription for a medicine you already take. Cancer drugs and some others on the list are usually managed by a specialist.

Renewing a medicine you've taken for years shouldn't cost a morning off and a trip to the office. Medicare's expanded telehealth rules, including video visits from home, run through December 31, 2027. In a video visit, a licensed doctor can review your medicines and renew a prescription if appropriate. Doctronic accepts Medicare.

For more on a single drug, see our pages on Ozempic, Janumet, Linzess and Breo Ellipta.

Frequently Asked Questions

When do the new Medicare negotiated drug prices start?

January 1, 2027, for the 15 drugs on this list. Prices for the first 10 negotiated drugs started January 1, 2026.

Is the negotiated price what I'll pay at the pharmacy?

No. It's the price Medicare and the drug company agreed on for the drug. What you pay depends on your plan's tier, copay or coinsurance, and your deductible.

Is Ozempic on the 2027 negotiated price list?

Yes. Ozempic, Rybelsus and Wegovy are on the list together, with a negotiated price of $274 for a 30-day supply. Your own cost depends on your plan.

Do I need to do anything to get the negotiated price?

No. The price applies through your Medicare drug plan. To see your cost, look up the drug on your plan's 2027 drug list.

Will more drugs get negotiated prices?

Yes. CMS is negotiating prices for 15 more drugs in 2026, and any new prices start in 2028.

The Bottom Line

Negotiated prices for 15 drugs, including Ozempic, Trelegy Ellipta and Janumet, start January 1, 2027, but your cost depends on your plan. Look up each drug you take on your plan's 2027 drug list to see its tier and your copay or coinsurance. If you need a renewal for one of these drugs, plan it before your current prescription runs out.