Is Your Medicine on Medicare’s New Cheaper Drug List? Here’s What Changes in 2027

If you have Medicare prescription drug coverage, some of your medications could cost less starting January 1, 2027.

Medicare has negotiated lower prices for 15 widely used prescription drugs, including medications for diabetes, asthma, cancer, and other serious health conditions.

About 5.3 million people with Medicare Part D used one of these drugs in 2024, according to the Centers for Medicare & Medicaid Services (CMS).

But there’s something important to understand: A lower negotiated drug price doesn’t automatically mean your copay will drop by the same amount.

What you actually pay will still depend on your Medicare drug plan, deductible, coverage rules, and whether you qualify for Extra Help.

With Medicare Open Enrollment beginning October 15, now is a good time to see whether your prescriptions are on the list and compare your options for 2027.

What Is Medicare Drug Price Negotiation?

The Medicare Drug Price Negotiation Program allows Medicare to negotiate prices directly with pharmaceutical manufacturers for certain high-cost prescription drugs.

This authority was established under the Inflation Reduction Act.

Previously, Medicare generally could not negotiate prices directly with manufacturers in this way.

Under the program, CMS selects certain expensive medications covered by Medicare and negotiates prices with their manufacturers.

These negotiated amounts are called maximum fair prices (MFPs).

The first round included 10 prescription drugs, with negotiated prices taking effect January 1, 2026.

Now, another 15 drugs will receive negotiated prices beginning January 1, 2027.

That brings the total to 25 drugs with negotiated prices in effect by the start of 2027.

However, these changes apply to specific medications and don’t mean that every prescription covered by Medicare will become cheaper.

Which 15 Drugs Have Lower Negotiated Prices for 2027?

CMS announced the final negotiated prices on November 25, 2025.

The following medications are included in the second round.

Although some entries include multiple brand names or formulations, CMS counts them together as 15 selected drug entries.

You can review the complete list and negotiated prices in the official CMS announcement.

Important: Being on this list does not guarantee that every Medicare Part D plan covers the medication or that Medicare will cover every use of it.

Your prescription must still meet the applicable coverage requirements.

How Much Cheaper Will These Medications Be?

The negotiated prices represent substantial reductions compared with the drugs’ 2024 list prices.

According to CMS, discounts across the 15 selected drugs range from approximately 38% to 85%.

Here are two examples.

Ozempic, Rybelsus, and Wegovy

CMS negotiated a price of approximately $274 for a 30-day supply, compared with a 2024 list price of about $959.

That’s a reduction of approximately 71%.

However, that doesn’t mean everyone taking one of these medications will pay $274 at the pharmacy.

Your actual cost depends on your plan and whether the medication is covered for your particular medical needs.

Breo Ellipta

Breo Ellipta, which is used to treat certain respiratory conditions, received a negotiated price of approximately $67 for a 30-day supply.

Its 2024 list price was approximately $397.

That’s a reduction of about 83%.

Again, the negotiated amount is not necessarily your personal copay.

Some people may pay less, while others may see a smaller change depending on their insurance coverage.

How Much Will Medicare Beneficiaries Save?

CMS estimates that the negotiated prices could save people with Medicare Part D approximately $685 million in out-of-pocket prescription drug costs in 2027 under the standard Part D benefit design.

The agency also estimated that Medicare would have saved approximately $12 billion in net drug spending if the negotiated prices had been in effect during 2024, using its stated comparison method.

These are national estimates, not guaranteed savings for individual beneficiaries.

The amount any one person saves will depend on their prescriptions, coverage, and cost-sharing requirements.

Someone who takes an expensive medication and pays coinsurance may experience a different change than someone who already pays a small fixed copay.

That’s why it’s important to review your own plan rather than assuming the published discount percentage will appear directly on your pharmacy receipt.

Does This Mean Your Medicare Copay Will Automatically Go Down?

Not necessarily.

The negotiated price is the amount established through Medicare’s negotiations with the drug manufacturer.

It is not the same as the copayment or coinsurance you personally owe.

Several factors can affect your final pharmacy bill.

Your Medicare Part D Plan

Different Medicare drug plans can have different formularies, preferred pharmacies, and cost-sharing arrangements.

A formulary is the list of medications covered by a particular plan.

Even when a medication has a negotiated price, you should verify that your plan covers it and review any applicable requirements.

Your Deductible

Some Medicare drug plans require you to pay a deductible before certain coverage benefits begin.

For 2027, the maximum permitted Part D deductible is $700, although some plans have lower deductibles or none at all.

Depending on your plan and the medication, your costs may be higher earlier in the year before you meet the deductible.

Copays and Coinsurance

Some plans charge a fixed copayment for a prescription.

Others charge coinsurance, which is a percentage of the drug’s cost.

Negotiated prices may affect these calculations, but the amount you pay will still depend on your plan’s rules.

Your Pharmacy

Using a preferred pharmacy may help reduce your costs under some Medicare drug plans.

Before switching pharmacies, check whether the location participates in your plan’s network and whether preferred pricing is available.

Extra Help

If you qualify for Medicare’s Extra Help program, you may already receive assistance with prescription drug costs.

Extra Help can reduce certain premiums, deductibles, and prescription copayments for eligible people with limited income and resources.

If you already receive Extra Help, the negotiated prices may affect your costs differently than they would for someone who doesn’t receive that assistance.

You can learn more about prescription assistance in our guide to free medications and prescription discounts.

What About Medicare’s Out-of-Pocket Spending Limit?

There’s another important protection for people with Medicare drug coverage.

For 2027, annual out-of-pocket spending on covered Part D medications is capped at $2,400.

That amount is higher than the $2,100 limit for 2026.

Once your qualifying out-of-pocket spending reaches the annual limit, you generally won’t owe additional copayments or coinsurance for covered Part D drugs for the rest of that calendar year.

Certain payments made on your behalf may also count toward the limit.

However, the cap does not mean every prescription is covered, and it doesn’t include every healthcare expense.

For example, it does not cover your Part D premiums or medications that aren’t covered under your Part D benefit.

This spending limit also helps explain why the savings from negotiated prices may vary.

Someone who already reaches the annual out-of-pocket limit may see a different financial effect than someone who spends much less on prescriptions throughout the year.

When Can You Compare Medicare Plans for 2027?

Medicare’s annual Open Enrollment Period runs from October 15 through December 7, 2026.

During this period, eligible beneficiaries can review their coverage and make changes for the following year.

Changes made during Open Enrollment generally take effect January 1, 2027.

This is especially important if you take one of the 15 medications receiving a negotiated price.

Even with lower negotiated prices, the plan you choose can make a significant difference in what you pay.

Review Your Annual Notice of Change

Medicare plans generally send an Annual Notice of Change before Open Enrollment.

This document explains changes to your plan’s coverage and costs for the following year.

Look for changes involving:

• Prescription drug coverage
• Copayments and coinsurance
• Deductibles
• Monthly premiums
• Pharmacy networks
• Other plan requirements

If you haven’t received your notice, contact your plan and ask for a copy.

Compare Your Medications Across Plans

Visit Medicare.gov to compare available Medicare plans.

Enter your current medications, dosages, and preferred pharmacies to estimate your prescription costs under different plans.

Be sure to compare total estimated yearly costs rather than looking only at monthly premiums.

A plan with a lower premium may not necessarily be the least expensive option if it charges more for your prescriptions.

What Should You Do Before January 2027?

You don’t need to change medications just because Medicare has negotiated a lower price.

Instead, focus on understanding your coverage.

Here’s a simple checklist.

1. Check your prescriptions. See whether any medications you currently take appear on the list of 15 selected drugs.
2. Review your 2027 plan information. Look for changes to your formulary, deductible, copayments, and pharmacy network.
3. Compare plans during Open Enrollment. The enrollment window runs from October 15 through December 7, 2026.
4. Ask about Extra Help. If you have limited income and resources, you may qualify for additional prescription drug assistance.
5. Confirm your expected pharmacy costs. Contact your Medicare drug plan if you’re unsure what you’ll pay for a particular medication in 2027.
6. Talk with your healthcare provider before changing prescriptions. A lower price doesn’t necessarily mean a medication is appropriate for your medical needs.

If you need assistance comparing plans, you can also contact Medicare at 1-800-MEDICARE (1-800-633-4227).

What If Your Medication Isn’t on the List?

If your prescription isn’t among the 15 medications selected for 2027, this particular round of negotiated prices doesn’t directly apply to it.

However, that doesn’t mean you have no options for reducing your medication costs.

You may still benefit from:

• Medicare’s Extra Help program
• Comparing Part D plans
• Asking about covered generic alternatives
• Manufacturer patient assistance programs, when eligible
• Other prescription assistance resources

If you’re struggling to afford your medications right now, don’t wait until January 2027 to look for help.

Our guide to free medications and prescription discounts explains additional ways to find assistance.

Will Medicare Negotiate More Drug Prices After 2027?

Yes.

CMS has already selected another group of medications for the next round of Medicare drug price negotiations.

That round includes certain medications covered under Medicare Part B for the first time, along with Part D drugs.

Any newly negotiated prices from that round are scheduled to take effect in 2028.

However, the 2028 selection is separate from the 15 medications receiving negotiated prices in January 2027.

You can follow future updates through the CMS Medicare Drug Price Negotiation Program.

Relief Recap

Prescription drug costs can take a serious toll on a household budget, especially for people living on fixed incomes or managing chronic health conditions.

Beginning January 1, 2027, Medicare’s newly negotiated prices will take effect for 15 additional prescription drugs.

These include medications used to treat diabetes, asthma, cancer, and several other conditions.

CMS estimates the changes could save Medicare Part D beneficiaries approximately $685 million in out-of-pocket costs in 2027, but individual savings will vary.

The most important thing to remember is that a negotiated drug price is not automatically your pharmacy copay.

Your costs will still depend on your plan, deductible, covered medications, and other factors.

With Medicare Open Enrollment running from October 15 through December 7, 2026, this is a good opportunity to compare your options and make sure your prescriptions are covered as affordably as possible.

And if you need help paying for medications today, explore our free medication and prescription assistance guide for additional resources.