Washington, D.C., November 27, 2025:
In a sweeping policy move projected to reshape the U.S. healthcare landscape, Medicare announced significant price reductions today on 15 high-cost prescription drugs, including the widely used diabetes and weight-loss medication Ozempic and cancer therapy Keytruda. The cuts—reaching up to 79%—follow Medicare’s second round of negotiations with major pharmaceutical companies, resulting in an estimated $12 billion in annual savings for beneficiaries and the federal program.
The announcement builds on the Inflation Reduction Act’s historic mandate allowing Medicare to negotiate drug prices for the first time, a shift long opposed by pharmaceutical lobbyists. Federal officials celebrated the initiative as a major victory for affordability, particularly for seniors who often face monthly copays exceeding $1,000.
AARP welcomed the move as overdue relief for 65 million Medicare enrollees, while the Pharmaceutical Research and Manufacturers of America (PhRMA) cautioned that deep price cuts could hinder future innovation and disrupt supply chains. The timing—coinciding with Thanksgiving eve shopping surges—heightened public attention as families continue to grapple with rising medical expenses.
The latest reductions signal a broader transition toward value-based pricing in the U.S. drug market. Additional negotiations expected in 2026 will target insulin therapies and heart medications, potentially expanding savings for millions managing chronic illnesses. Analysts say lower out-of-pocket costs could improve treatment adherence and reduce the financial strain known as “medical toxicity” across the country.
