Medicare’s drug price negotiation program is entering its next phase. A second round of negotiated prices takes effect on January 1, 2027, covering 15 widely used Part D drugs — and the discounts are bigger than most people expect. Here’s what’s changing, which drugs are affected, and how much you could actually save.
What Is the Medicare Drug Price Negotiation Program?
The program was created by the Inflation Reduction Act of 2022. For the first time, the Centers for Medicare & Medicaid Services (CMS) is allowed to negotiate directly with drug manufacturers on the price Medicare pays for certain high-cost medications covered under Part D.
The first round of negotiated prices — covering 10 drugs — already took effect on January 1, 2026. CMS has since announced a third cycle of drug selections, with negotiated prices for a second group of 15 Part D drugs set to take effect January 1, 2027.
The 15 Drugs Getting New Negotiated Prices in 2027
The second group of negotiated drugs includes widely prescribed medications for diabetes, obesity, cancer, and asthma — including the GLP-1 drugs Ozempic and Wegovy. Based on 2024 list prices, the negotiated discounts range from 38% (Austedo/Austedo XR) up to 85% (Janumet/Janumet XR), with other drugs like Breo Ellipta (83%), Linzess (75%), and Ibrance (50%) also seeing steep cuts.
Not every dosage or formulation of a drug is automatically included, so it’s worth confirming your exact prescription is on the official negotiated list before assuming your price will drop.
How Much Could You Actually Save?
Because these prices are new, it helps to see the math in a simple example rather than just a percentage:
| Scenario | Estimated 30-Day Supply Cost (2024 List Price) | Estimated Cost After 2027 Negotiated Price |
|---|---|---|
| Drug with an 85% negotiated discount | $500 | ~$75 |
| Drug with a 50% negotiated discount | $500 | ~$250 |
| Drug with a 38% negotiated discount | $500 | ~$310 |
Nationally, CMS estimates the second round of negotiated prices will save Medicare Part D enrollees about $685 million in out-of-pocket costs in 2027. If those same prices had applied back in 2024, the government estimates it would have saved $8.5 billion in net covered drug costs overall.
Do You Need to Do Anything to Get the Lower Price?
No separate application is required. If you’re enrolled in a Medicare Part D plan (or a Medicare Advantage plan with drug coverage) and you’re prescribed one of the negotiated drugs, the lower price is applied automatically at the pharmacy once it takes effect on January 1, 2027.
The one thing worth doing ahead of time: check with your pharmacist or plan that your specific drug and dosage are on the finalized negotiated list, since coverage details can vary slightly by plan.
How This Fits With the Part D Out-of-Pocket Cap
These negotiated prices work alongside the existing Medicare Part D $2,000-range annual out-of-pocket cap on covered drugs. Even if you hit your annual cap before a negotiated price applies, the negotiated price still lowers what your plan pays — which helps keep premiums and overall plan costs more stable for everyone in the plan.
Where to Check the Official List
Because negotiated drug lists and effective dates can be updated, the safest way to confirm your medication is included is to check CMS’s official announcements directly rather than relying on secondhand summaries — including this one. Bookmark the official source below and check back as the January 1, 2027 effective date approaches.
Frequently Asked Questions
Is this the same as a drug coupon or discount card? No. Negotiated prices are built into what Medicare Part D pays and are applied automatically at the pharmacy for eligible enrollees — you don’t need a separate card or coupon.
What if my drug isn’t on the list? Only the specific drugs selected by CMS for each negotiation cycle get a negotiated price. Other medications may still be affected indirectly as plans adjust formularies, but they won’t see this specific discount.
Will there be more rounds after 2027? Yes. The program is designed to add more negotiated drugs in future cycles, so it’s worth checking CMS’s updates each year.