(WDNews) — The Centers for Medicare & Medicaid Services announced Wednesday that Medicare will save about $12 billion after negotiating lower prices on 15 major prescription drugs. These medicines are commonly used to treat cancer, diabetes, asthma and other chronic health conditions.
The Centers for Medicare & Medicaid Services said the new lower prices — known as Maximum Fair Prices (MFPs) — will begin January 1, 2027. When combined with the 10 drugs already negotiated for 2026, Medicare will have lower prices on 25 high-cost medications.
“President Trump directed us to stop at nothing to lower health care costs for the American people,” said Health and Human Services Secretary Robert F. Kennedy, Jr. “As we work to Make America Healthy Again, we will use every tool at our disposal to deliver affordable health care to seniors.”
The Centers for Medicare & Medicaid Services Administrator Mehmet Oz, MD, said this year’s results show strong progress. “We achieved better outcomes for taxpayers and seniors — not the modest or counterproductive deals we saw before,” he said.
Deputy Administrator and Medicare Director Chris Klomp added that the staff worked hard to make the negotiations “serious, fair, and disciplined.”
The Centers for Medicare & Medicaid Services says the new prices are expected to help seniors pay less for needed medications while also helping protect Medicare’s long-term stability.
From January through December 2024, about 5.3 million Medicare Part D patients used these 15 drugs. Together, the medications cost Medicare about $42.5 billion, or roughly 15% of all Part D spending.
More information, fact sheets, and infographics are available on the Centers for Medicare & Medicaid Services website.
