🚀 What’s Currently in Motion
- 15 high‑cost drugs under negotiation: This round includes heavyweights like Novo Nordisk’s Ozempic (used for type 2 diabetes) and Amgen’s Otezla (for psoriasis and arthritis). Both companies have received initial pricing offers from Medicare, signaling the formal start of complex negotiations npr.org+2npr.org+2npr.org+2.
- Timeline for decisions: Negotiations kicked off in June and are expected to wrap up by October. The finalized prices will be announced by November 30, with new rates taking effect in January 2027 .
đź“š Why This Matters
- Empowering the marketplace: Before 2022, Medicare Part D—which provides coverage to over 50 million seniors—had no authority to negotiate drug prices. The Inflation Reduction Act changed that, enabling the program to leverage its purchasing power npr.org+1npr.org+1.
- Second wave, bigger impact: The first negotiation in 2024 tackled 10 blockbuster drugs, yielding significant price cuts—up to 79% on Januvia and 38% on Imbruvica—with new prices going live January 2026 npr.org+3npr.org+3npr.org+3.
- Projected savings: Analysts suggest this round, affecting 15 drugs, could reduce drug costs for seniors and the government by billions, thanks in part to deep cuts (40–80%) negotiated under the program npr.org.
🤔 Politics & Vibes
- Bipartisan continuation: Although initiated under President Biden, the program is still active under the current Trump administration. Experts like Harvard’s Ben Rome note that the process remains in motion “in the background” npr.org.
- Executive actions & pushback: Former President Trump has introduced additional executive orders on drug pricing, including most-favored-nation strategies and insulin assistance plans. However, certain conservative groups, like Heritage Foundation’s Project 2025, are calling for repeal of Medicare negotiation powers npr.org.
🔍 What Lies Ahead
- Final deals by November 30 — setting 2027 price levels.
- Third batch coming in 2026 — draft guidance’s already out for negotiations on a new set of drugs scheduled for early 2026 npr.org+1npr.org+1.
- Guarding innovation — drugmakers argue price caps could hurt new drug development, though federal analysts (like the CBO) say any impact should be modest npr.org.
đź’ˇ Final Takeaways
Medicare’s negotiations represent a landmark change, empowering a giant public insurer to directly challenge pharmaceutical pricing. With the second round now underway—tackling major brands like Ozempic and Otezla—it’s clear the U.S. is doubling down on delivering relief to seniors and budget-strapped Medicare.
The path ahead? Watch for final prices this fall and rollout in January 2027. Future batches seem locked in, assuming no dramatic legislative shifts.