The Centers for Medicare & Medicaid Services (CMS) has completed the first large-scale drug price negotiation in U.S. history, achieving an average 44% price reduction for 15 medications treating severe chronic diseases and cancer. This is expected to save the Medicare system $12 billion. The initiative is a core part of the Trump administration's "Affordable Care Action" plan aimed at lowering healthcare and food costs.
On November 26, reports indicated that CMS announced Novo Nordisk's GLP-1 weight-loss drugs Ozempic and Wegovy saw a 71% price reduction, marking the most notable outcome of this negotiation round. The 15 targeted drugs represent the highest-expenditure medications under Medicare Part D, used to treat chronic conditions including cancer, diabetes, and asthma. Health and Human Services Secretary Robert F. Kennedy Jr. stated that President Trump directed them to spare no effort in reducing healthcare costs. With midterm elections approaching, affordability has become a key concern for low-income families.
For the pharmaceutical industry, this signals a significant expansion of government pricing power. Reports note that Novo Nordisk expressed "serious concerns" about government-led pricing models and continues to oppose the negotiation framework.
**Significant Price Reductions for Key Drugs** The negotiation yielded substantial results, with multiple core drugs seeing major price cuts. Pfizer's breast cancer drug Ibrance dropped 50%, prostate cancer treatment Xtandi fell 48%, and GSK's Trelegy Ellipta saw a 73% reduction.
CMS statistics show that combined with 10 drugs negotiated last year (effective January 1, 2026), the policy will cover 25 medications, further extending its impact.
Health and Human Services Secretary Robert F. Kennedy Jr. emphasized: "Following President Trump's directive, we are fully committed to lowering healthcare costs for Americans. Under the vision of 'Making America Healthy Again,' we will use all available tools to ensure seniors have access to affordable care."
Amid the government-led pricing mechanism, pharmaceutical companies are adjusting strategies to adapt. Novo Nordisk, while voicing concerns about the current pricing framework, strategically adjusted GLP-1 drug prices to maintain market competitiveness—a clear example of balancing policy pressures and market demands.
**Pre-Election Strategic Move** CMS's announcement marks an accelerated phase in the Trump administration's efforts to reduce prescription drug prices, improve Medicare affordability, and control overall healthcare spending. Parallel measures to stabilize food prices reflect a systematic, multi-pronged cost-control approach under the "Affordable Care Action" plan.
With low-income families facing ongoing budget pressures, healthcare and living costs have become pivotal issues in the midterm election cycle. The timing of this first large-scale disclosure of drug price negotiation results carries clear political intent—showcasing policy execution while leveraging price cuts as electoral momentum to strengthen the administration's economic and民生 governance image.
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