CMS Announces Savings from Medicare Price Negotiation Program

December 03, 2025

CMS will save $12 billion on the 15 commonly used drugs included in the second phase of the agency’s price negotiation program, federal officials announced late last month.

The new prices for the 15 drugs included in round two will be effective January 2027, bringing the total to 25 drugs that are now included in the program.

Here’s what you need to know:

• Background:  The price negotiation was included in the Inflation Reduction Act and is part of a broader initiative to control the price of costly Medicare drugs.
  • The program is focused on single-source products that make up the bulk of Medicare drug spending.
• Second phase:  The second round of negotiations included several high-profile drugs that are commonly used for diabetes, cardiovascular disease, obesity, cancer, and asthma, among other conditions.
• Prices:  The negotiated discount prices are between 38 percent and 83 percent lower than the 2024 list prices. The maximum fair prices can be found online.
• Significant slice:  About 5.3 million people with Medicare Part D coverage used these drugs during 2024, accounting for $42.5 billion (15%) in total gross covered prescription drug costs under Medicare Part D.
• Quotable:  “The newly negotiated prices will generate billions in savings for Medicare, supporting its long-term sustainability,” federal officials said in a statement last month.

Additional information about the announcement from CMS is available online.