The Trump administration has announced new, lower Medicare prices for 15 widely used prescription drugs as part of the latest phase of the Medicare drug price negotiation program established by the Biden-era Inflation Reduction Act.
This round of negotiations focused on drugs that represent some of Medicare’s highest expenditures, including common cancer and diabetes treatments, inhalers, and GLP-1 medications.
The newly negotiated prices reflect the amount the government pays for these medications—not patients’ out-of-pocket costs—but are expected to generate significant savings. According to federal officials, the new pricing is projected to save Medicare a total of $12 billion compared to last year’s spending.