Medicare Secures 71% Price Cut On Novo's Anti-Obesity Drug As Part Of Broad Affordability Push
The Trump administration is laser-focused on "Operation Affordability," aiming to drive down the cost of food and healthcare ahead of the midterm election cycle.
On Tuesday, the Centers for Medicare & Medicaid Services (CMS) announced a savings of 44%, or $12 billion, from last year's negotiated Medicare spending on 15 drugs used to treat severe chronic conditions and cancer.
Of those price cuts, CMS negotiated a 71% discount on GLP-1 medication, including Ozempic and Wegovy, for Medicare patients.
Other significant reductions include a 50% cut for Pfizer's Ibrance, a 48% drop for the prostate-cancer drug Xtandi, and a 73% reduction for GSK's Trelegy Ellipta.
Here's more from CMS:
The Maximum Fair Prices (MFPs) for these 15 drugs will become effective January 1, 2027, bringing the total number of negotiated drugs to 25 when combined with the 10 previously negotiated drugs with MFPs taking effect January 1, 2026. The 15 drugs in this second negotiation cycle, used to treat cancer, diabetes, asthma, and other chronic illnesses, represent some of the highest Medicare Part D spending. The MFPs offer substantial savings for both beneficiaries and the Medicare program.
These are the first large-scale, publicly disclosed Medicare drug-price negotiations – and for good reason, as the administration works to lower healthcare costs.
"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."
Bloomberg quoted Novo Nordisk as saying it had "serious concerns" about government-driven pricing and continued to oppose the negotiation framework, even as it pivoted toward aggressive price cuts for its GLP-1 drugs to gain market share.
Related:
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Novo Undercuts Lilly's Obesity Drug Price, Now Cheaper Than Car Payment
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Trump's Lilly And Novo Deal Slashes Monthly Weight-Loss Drug Costs By Up To 90%
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"Surgical & Beautiful": Trump Boasts Operation Affordability Ahead Of Midterm Cycle
CMS' announcement underscores the administration's accelerated push to lower prescription drug costs, expand affordability for Medicare beneficiaries, and reduce broader medical expenses, alongside efforts to ease food prices. With low-income household budgets under strain, affordability is shaping up to be a major topic heading into the midterm election cycle.
Tyler Durden
Wed, 11/26/2025 – 07:45