Summary
The Centers for Medicare & Medicaid Services (CMS) has announced price cuts for 15 prescription drugs used to treat chronic illnesses like cancer and diabetes. These reductions will save an estimated $12 billion and are part of efforts to lower drug costs for Medicare users. The new drug prices, negotiated under policies from President Trump's administration and prior efforts, will take effect in 2027.
Key Facts
- CMS announced price cuts for 15 drugs treating chronic diseases.
- The cuts will save an estimated $12 billion from Medicare's spending.
- New prices take effect on January 1, 2027.
- The reductions are a continuation of efforts under the Inflation Reduction Act and President Trump's policies.
- These 15 drugs accounted for about $42.5 billion in Medicare Part D costs in 2024.
- The price changes are part of the Medicare Drug Price Negotiation Program's second negotiation cycle.
- The affected drugs include treatments for cancer, diabetes, asthma, and more.
- Savings for Medicare enrollees are expected to reach $685 million in 2027.
