Top Diabetes Drugs Anticipated To Get Lower Medicare Pricing

Key takeaways:
- The latest: Lower prices for 15 more medications – including Ozempic, Wegovy, and Rybelsus – are expected to be negotiated for 2027 as part of ongoing Medicare drug price negotiations.
- Reduced prices for 10 drugs covered under Medicare (including Jardiance, Farxiga, Januvia, rapid-acting insulin NovoLog, and ultra-rapid Fiasp) are scheduled to go into effect in 2026.
- People on Medicare paid roughly $3.4 billion in total out-of-pocket costs in 2022 for the drugs on the list. The new prices would save some people hundreds of dollars per month.
Following the completion of the first round of drug price negotiations, Medicare announced plans to negotiate prices for an additional 15 drugs, including Ozempic and Wegovy, which can cost people nearly $900 out of pocket without insurance or discounts. Negotiations with pharmaceutical companies are set to begin in 2025, with the new pricing expected to take effect in 2027.
As part of initial negotiations that took place in 2023 under the Biden administration, new substantially lower prices are expected to take effect in 2026 for 10 drugs – among them, a handful of medications approved for diabetes, heart failure, and kidney disease.
What effect the new Trump administration will have on drug prices and the Inflation Reduction Act, which aims to reduce healthcare costs and prescription drug prices, is unclear at this time.
Which diabetes drugs will be negotiated?
Negotiated drug prices for 2027 aren’t available yet, but here’s which diabetes and weight loss drugs made the list:
- Ozempic (semaglutide for type 2 diabetes)
- Wegovy (semaglutide for weight loss)
- Rybelsus (oral semaglutide)
- Janumet (sitagliptin and metformin)
- Janumet XR (sitagliptin and extended-release metformin)
- Tradjenta (linagliptin)
The following diabetes medications are expected to see reduced prices in 2026:
Drug name | Medication class | Approved for | Negotiated Price for 30-day supply in 2026 |
Jardiance | SGLT-2 inhibitor | Diabetes, heart failure, and chronic kidney disease | $197 (current price $573) |
Farxiga | SGLT-2 inhibitor | Diabetes, heart failure, and chronic kidney disease | $178.50 (current price $556) |
Januvia | DPP-4 inhibitor | Diabetes | $113 (current price $527) |
Fiasp FlexTouch Fiasp PenFill NovoLog FlexPen NovoLog PenFill | Rapid-acting (NovoLog) and ultra-rapid-acting (Fiasp) insulin | Diabetes | $119 (current price $495) |
The list also includes three medications for broader cardiovascular health:
- Entresto, approved for heart failure. $295 (current price $628)
- Xarelto, a blood thinner used to prevent and treat blood clots. It also reduces the risk of clots for people with coronary or peripheral artery disease. $197 (current price $517)
- Eliquis, a blood thinner approved for the prevention and treatment of blood clots (current price $628).
How were these drugs chosen for negotiation?
The former U.S. Health Secretary made the selection from a list of medications with the highest total Medicare Part D spending (Medicare Part D refers to prescription drug coverage). It includes several diabetes medications and insulins – including Ozempic, Wegovy, Lantus, Jardiance, NovoLog, and Trulicity – that are also on the list of the most expensive drugs overall.
The medicines chosen were used by more than 8 million people covered by Medicare Part D in 2024, according to CMS, which amounted to $50.5 billion in total prescription drug costs.
Will other drug prices be negotiated?
Medicare is expected to negotiate 15 more drugs under Part D to go into effect in 2028. An additional 20 drugs are anticipated to see lower prices in 2029.
How large of an impact will negotiated prices have?
Former President Joe Biden said that once the negotiated prices take effect, up to 9 million older adults may see lower drug prices. This is especially important because seniors currently pay up to $6,500 in out-of-pocket costs each year for these medications.
In 2022, Medicare beneficiaries paid $3.4 billion in total out-of-pocket costs for the 10 drugs that will see negotiated lower prices in 2026. Negotiated prices will range from 25-60% off a drug’s list price. Discounts may vary based on how long a medication has been on the market.
What does this announcement mean for people with diabetes?
More affordable drugs for people with diabetes on Medicare will likely lead to more consistent use of their medication and better blood sugar management.
"Making diabetes care more affordable is a top priority for the American Diabetes Association. We commend CMS for taking action to bring down costs of life-saving drugs, including those for Medicare beneficiaries living with prediabetes and diabetes,” said Lisa Murdock, chief advocacy officer at the American Diabetes Association.
How might price negotiations affect diabetes research and innovation?
One unintended effect of these price reductions is that they may potentially slow down pharmaceutical research. When lower prices go into effect, drug companies will likely make less money on these drugs. If drug companies bring in less money overall, they may need to make budget cuts to certain parts of their business, such as investing in research and clinical trials.
Since research is a key part of improving diabetes care, it is important to continue to advocate for investment in clinical trials.
“Equally as important is the ongoing support of innovative research and development to find a cure for diabetes. We look forward to continuing to work with CMS and others to have a positive impact in the diabetes community we serve,” Murdock said.
It’s unclear yet if the new Trump administration will have any effect on drug price negotiations.
Learn more about access to diabetes medications and insulin here: