Medicare will negotiate prices for weight loss drugs, aiming to lower costs for seniors and taxpayers starting in 2026

Washington: So, here’s the scoop. Medicare is stepping up to negotiate prices for popular weight loss drugs like Ozempic and Wegovy. These meds have been pretty pricey, and many folks have been feeling the pinch.
The Biden administration announced that these drugs will be part of a new negotiation process. This means the government will talk directly with drug manufacturers to lower costs. It’s a big deal because it could save taxpayers billions.
Along with Ozempic and Wegovy, other drugs like Trelegy Ellipta and Otezla are also on the list. The goal is to make these medications more affordable for seniors who rely on them.
However, there’s a catch. Medicare can’t cover these drugs for weight loss due to a federal law. Right now, they only cover them for diabetes treatment. There’s a proposed rule that could change this, but it’s up to the incoming Trump administration to decide.
For years, Medicare wasn’t allowed to negotiate prices, but a new law has changed that. It was passed by Democrats and signed by Biden, and it’s unclear if Republicans will try to roll it back.
Drug companies aren’t thrilled about this negotiation process. They’ve even filed lawsuits against it. The pharmaceutical lobby is pushing for changes, claiming the Biden administration is rushing things.
Last year, Medicare already reached deals on 10 other drugs, cutting prices significantly. This is expected to save around $6 billion for taxpayers and $1.5 billion for Medicare enrollees.
While the negotiated prices won’t kick in until 2026, there’s a new rule this year that caps out-of-pocket costs for prescription drugs at $2,000 annually. So, some relief is on the way!
In the coming years, more drugs will be added to the negotiation list, which is good news for those who need affordable medications.