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Medicare Changes in 2027: What You’ll Actually Pay

August 31, 2026 · Personal finance
An older woman sits at a kitchen table looking at papers, pill bottles, and a medication organizer.
Starting January 1, 2027, federally negotiated prices take effect for 15 high-spend medications to lower direct out-of-pocket costs.

Historic Drug Price Negotiations: 15 High-Spend Medications Lowered

Effective January 1, 2027, federally negotiated Maximum Fair Prices (MFPs) take effect for a second round of 15 high-spend medications. This program empowers Medicare to negotiate drug prices directly with pharmaceutical manufacturers.

These negotiated rates target widely prescribed brand-name treatments for diabetes, weight management, respiratory illness, and cancer. CMS estimates these price reductions will save beneficiaries approximately $685 million in direct out-of-pocket costs in 2027.

Key medications included in the 2027 negotiated price rollout include:

  • Ozempic and Wegovy: Widely prescribed treatments for type 2 diabetes management and cardiovascular risk reduction.
  • Trelegy Ellipta: A leading maintenance inhaler therapy for chronic obstructive pulmonary disease (COPD) and asthma.
  • Xtandi: An essential targeted therapy used to treat advanced prostate cancer.
  • Pomalyst: A key oral medication prescribed for patients managing multiple myeloma.
  • Ibrance: A widely used advanced prescription for HR-positive, HER2-negative breast cancer.

If you take any of these medications, your copayments and coinsurance amounts will drop significantly at the pharmacy counter. These mandatory lower prices apply across all Medicare Part D and Medicare Advantage prescription drug plans.

These direct savings help high-need patients reach financial stability much faster without exhausting retirement savings on essential life-saving therapies.

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