How negotiation works
The Inflation Reduction Act lets Medicare negotiate prices directly with drugmakers for certain high-spend drugs without generic competition. The first 10 negotiated prices took effect on January 1, 2026. CMS announced the second round, for 15 more drugs, in November 2025, with prices effective in 2027.
Semaglutide and the second round
The 2027 list includes semaglutide, sold as Ozempic, Wegovy and Rybelsus. CMS published a negotiated “maximum fair price” for these products that is well below their list price. Separately, the administration announced pricing agreements for GLP-1 drugs, and how the two interact is still being worked out.
What it means for you
- The negotiated price is what Medicare pays, not your copay. Your cost still depends on your Part D plan’s formulary and cost-sharing.
- Your total drug costs are capped by the Part D out-of-pocket limit; see the Part D cap.
- Check your 2027 plan’s formulary during open enrollment.
- Medicare coverage of drugs for weight loss alone is limited; ask your plan.
General information, not medical, legal or insurance advice. This post reflects the position on the date shown. Check the official sources below for the latest rules.
Last updated: 15 October 2026
