Medicare Negotiations Continue: 15 More Drugs Including Weight-Loss Treatments Could See Price Cuts in 2027 – Image for illustrative purposes only (Image credits: Pexels)
Prescription costs continue to weigh heavily on older Americans, with roughly one in five Medicare beneficiaries spending more than $1,000 a year on treatments for diabetes, cancer, heart disease, arthritis, and obesity. The Inflation Reduction Act gave Medicare the power to negotiate directly with manufacturers, and that authority is now moving into its second phase. Fifteen additional medications have been selected for price talks, with lower costs expected to take effect in 2027. Among them are several widely used GLP-1 drugs that have driven sharp increases in program spending.
The Program Builds on Its First Round of Agreements
The initial set of ten negotiated drugs saw reduced prices begin in 2026. The current selection adds fifteen more products that together accounted for $42.5 billion in Medicare Part D spending during 2024. Approximately 5.3 million beneficiaries used at least one of these medications last year. Federal officials project that the new round could trim hundreds of millions of dollars from annual out-of-pocket costs once the agreements are finalized.
CMS has already signaled that the process will continue without pause. Another fifteen drugs were chosen earlier this year for negotiations that will affect 2028 prices, and the agency is authorized to select up to twenty medications each year starting in 2029. Both Part D prescription drugs and certain Part B physician-administered products fall under the expanding scope.
Weight-Loss Treatments Enter the Spotlight
Semaglutide products such as Ozempic, Wegovy, and Rybelsus stand out on the new list because of their rapid growth in Medicare utilization. In 2024 alone the program spent more than $15 billion on these medications for roughly 2.3 million beneficiaries. Negotiated prices could produce substantial discounts, with some estimates suggesting reductions of more than 70 percent from current levels.
The inclusion of these drugs has sharpened an existing policy debate. Many beneficiaries and clinicians view effective obesity treatment as medically necessary, while others caution that broad coverage could strain Medicare finances over the long term. Coverage rules for weight-loss medications under Part D remain narrower than for other chronic conditions, and eligibility often depends on documented medical need and plan-specific criteria.
Stakeholders Weigh Practical Effects on Daily Costs
For retirees living on fixed incomes, even modest reductions in copays or coinsurance can ease pressure at the pharmacy counter. CMS estimates the second round of negotiations could deliver about $685 million in annual savings to beneficiaries once the new prices apply in 2027. Medications on the list treat a range of serious conditions, including asthma, COPD, diabetes, certain cancers, schizophrenia, and autoimmune disorders.
Manufacturers have responded with lawsuits that challenge the negotiation authority on constitutional and procedural grounds. They argue that mandated price reductions could slow investment in new therapies for cancer, Alzheimer’s disease, and rare conditions. Courts have so far permitted the program to move forward while the cases proceed. Some companies also warn that lower Medicare prices could eventually influence pricing in the broader commercial market.
Questions of Access and Long-Term Coverage Remain
Lower list prices do not automatically guarantee unchanged access. Analysts note that insurers could respond by adjusting formularies, adding prior-authorization steps, or limiting quantities even after negotiated rates take effect. Weight-loss drugs face additional scrutiny because Medicare has historically restricted coverage for obesity treatments under Part D.
CMS recently postponed parts of its obesity-drug pilot program until 2027 while extending temporary bridge coverage for some patients. Beneficiaries interested in GLP-1 medications may still encounter varying eligibility rules, documentation requirements, and plan differences depending on where they live. These details will shape how widely the anticipated savings actually reach patients.
What matters now: The second round of Medicare negotiations is set to deliver lower prices on fifteen additional medications beginning in 2027, with particular attention on high-spending GLP-1 treatments. Stakeholders are watching both the projected savings and the steps insurers may take to manage access and costs in the years ahead.
