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Government Slashes High-Cost Drug Prices
25 Nov, 2025
Summary
- Medicare drug prices negotiated to be lower than current net prices.
- New prices for 15 high-cost drugs to take effect in 2027.
- Previous negotiations under IRA resulted in average 22% discount.
The U.S. government is poised to reveal negotiated prices for 15 of its most expensive prescription drugs covered by Medicare. These newly agreed-upon prices, which will take effect in 2027, are anticipated to be below current net prices, signaling a commitment to reducing healthcare expenses for seniors and individuals with disabilities.
This upcoming announcement follows earlier price negotiations initiated under the Biden administration's Inflation Reduction Act. For the initial 10 high-cost medicines, these negotiations resulted in an average discount of 22% compared to previous Medicare net prices, demonstrating potential for substantial savings.
Historically, Medicare was unable to negotiate drug prices, unlike many other nations. The Inflation Reduction Act changed this, allowing for centralized price negotiation. While the pharmaceutical industry has opposed these measures, the government aims to continue bringing down costs for essential medications.
