Medicare to Negotiate Ozempic Prices Under Inflation Reduction Act, Saving $200 Billion

Jan 17, 2025, 04:04 PM

The Biden administration has announced that Medicare will include 15 additional drugs in its price negotiation program, including Novo Nordisk's blockbuster weight loss medications Ozempic and Wegovy, which contain semaglutide. These drugs are popular treatments for Type 2 diabetes and obesity but have been scrutinized for their high out-of-pocket costs. The negotiated prices are expected to take effect in 2027 under the Inflation Reduction Act and are projected to save the government more than $200 billion over a decade. The combined cost of these drugs to Medicare is $41 billion. With this second round of negotiations, a total of 25 drugs have now been selected for price reductions, aiming to reduce prescription drug costs for millions of Americans.