CMS Kicks Off Round 2 of Medicare Drug Negotiations

Ozempic tops the list for Part D costs

March 18, 2025

The makers of all 15 drugs selected for round two of Medicare price negotiations have agreed to come to the table.

On Monday, CMS announced that it had secured agreements with manufacturers of the 15 drugs covered under Medicare Part D. “This is an important step in the process which initiates the negotiation period between the manufacturer and CMS,” the agency said in a statement.

Here’s what you need to know:

• The process:  CMS will meet with the selected manufacturers to review drug pricing data. The agency also will host 15 patient-focused roundtable events and an addition discussion for clinicians.
  •  The drugmakers will send their initial "maximum fair price” offer during June, leading to two additional negotiation sessions ending in November.
• Selection process:  The 15 selected products are single-source drugs with no generic or biosimilar competition and account for about 14 percent of Medicare Part D covered drug costs.
• Leading the pack:  The GLP-1 drugs Ozempic, Rybelsus, and Wegovy lead the way for Part D covered drug costs at $14.4 billion from November 2023–October 2024.
• Timeline:  After negotiations, the target date for the new prices would go into effect is during 2027.
• Quotable:  “The law makes improvements to Medicare by expanding benefits, lowering drug costs, and improving the sustainability of the Medicare program for generations to come,” the agency said in a statement.

A fact sheet about the program with details about the timeline for negotiations is available online.