Medicare has negotiated major price cuts for 15 high-cost prescription drugs, averaging a 44% reduction and projecting $12 billion in savings. Enabled by the Inflation Reduction Act, this marks the first time Medicare can directly negotiate prices, with changes starting in 2027. Despite legal challenges from drugmakers, courts have upheld the policy. The new prices are expected to lower seniors’ costs and set a benchmark that could drive down drug prices across the entire U.S. healthcare system.
