Marketplace Morning Report Slimmed down Medicare prices for diabetes and obesity drugs
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Nov 26, 2025 Henry Epp, a Marketplace reporter focusing on policy and business, shares groundbreaking news about Medicare's upcoming 71% discount on diabetes and obesity drugs like Ozempic and Wegovy. This will significantly reduce costs from nearly $1,000 to just $274. Harshon Rattenpaul, a field reporter, introduces an innovative bidding system by Feeding America, utilizing 'fake cash' to optimize food donations for local banks, highlighting its potential to match supply with community needs while grappling with inherent scarcity issues.
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Medicare Price Cuts For Popular Weight-Loss Drugs
- Medicare will get a 71% discount on Ozempic and Wegovy starting in 2027, slashing monthly costs to about $274.
- The Inflation Reduction Act enabled CMS to negotiate prices for 15 drugs, producing these lower prices starting next year and into 2027.
How Negotiation Power Was Created
- The Inflation Reduction Act let CMS negotiate 15 drug prices per year but delays meant negotiated prices start in 2026 and the first batch appears in January.
- The Biden administration negotiated some diabetes drugs and a blood thinner, with subsequent rounds covering obesity drugs in 2027.
Bidding For Truckloads At A Food Bank
- Daryl Bascom logs in each morning to bid digital points for truckloads of donated food on a marketplace-style system.
- He won a snack load for 3,000 points but lost baby formula that went for 40,000 points to a larger food bank.