Marketplace Morning Report

Episode: Slimmed down Medicare prices for diabetes and obesity drugs
Date: November 26, 2025
Host: David Brancaccio

Overview

This episode delivers a tight summary of the latest business and economic headlines, with a focus on new, significantly reduced Medicare prices for popular diabetes and obesity drugs under the Inflation Reduction Act. The show also covers government intervention in the private sector under the Trump administration, and highlights how Feeding America has re-imagined its food distribution network using a market-style bidding system.

Key Discussion Points & Insights

Major Discounts on Diabetes and Obesity Drugs under Medicare

[01:14–03:01]

• Medicare Discounts for Ozempic & Wegovy:

  • Starting in 2027, Medicare will receive a 71% discount on Ozempic and Wegovy, reducing out-of-pocket costs from almost $1,000 per month to $274.
  • Novo Nordisk, the manufacturer, has also lowered monthly prices for existing out-of-pocket patients.

• More Lower-Priced Drugs Through Government Website:

  • Upcoming obesity drugs from Novo Nordisk and Eli Lilly will be available at reduced prices on a new government-run website, launching early next year.

• Wider Drug Discounts:

  • The Centers for Medicare and Medicaid Services (CMS) announced price drops for 14 additional drugs, also effective in 2027.

• Background and Legislation:

  • These changes are possible due to the Inflation Reduction Act (2022), which for the first time empowers CMS to negotiate prices for 15 drugs annually.
  • The discounted prices go into effect in 2026 for the first wave of drugs (e.g., diabetes drugs and a widely used blood thinner), with the next wave following in 2027.

Notable Quote:

"Medicare will get a 71% discount off the list price of Ozempic and Wegovy starting in 2027 and that'll bring the monthly costs down from nearly $1,000 to $274." — Henry Epp [01:34]

Trump Administration: Private Sector Intervention

[03:01–04:02]

• Mixing Government and Business:

  • President Trump is pursuing active intervention in public companies (e.g., Intel) and even influencing entertainment companies, with rumors swirling about a presidential push to revive the "Rush Hour" movie franchise at Paramount-Skydance.

• Cultural Ripple Effects:

  • The director, Brett Ratner, is benefiting from presidential support after a slowdown due to allegations of misconduct (which he denies) and is working on a documentary about First Lady Melania Trump.
  • Paramount is simultaneously bidding for Warner Brothers, a high-stakes deal likely facing antitrust review.

Notable Quote:

"President Trump often works to mix government into the private sector. Now there are reports that the studio Paramount Skydance may revive a dormant movie franchise, Rush Hour, at the urging of the president." — David Brancaccio [03:01]

Feeding America: Bringing Markets to Food Banks

[05:29–08:52]

• Old vs New System:

  • Feeding America, the nation's largest hunger nonprofit, struggled with logistics using an algorithmic system that pushed unwanted food (e.g., excess potatoes) to food banks, leading to inefficiencies.

• Market Innovation—The Choice System:

  • Food banks now participate in daily online "bidding wars" using digital “fake cash” to win truckloads of preferred food items.
  • Designed by UChicago economist Canis Prendergast, the system gives banks in higher-poverty areas more points to ensure equity.

• Efficiency and Fairness:

  • This system accommodates food banks’ differing needs and preferences, greatly increasing satisfaction and efficiency.

• Scarcity Remains a Challenge:

  • The system can't remedy shortages—for highly sought-after items like baby formula, not all banks can "win."
  • Example: Darrell Bascom in Missouri loses out on a baby formula shipment to a New York bank with more bidding points.

Notable Quotes:

"Roger says, I'm sick of them giving me potatoes... I have a warehouse full of potatoes." — Canis Prendergast recounts, [07:17–07:24]
"There's an inherent fairness in it." — Canis Prendergast, [07:51]
"You can't always get what you want." — Harshawn Rattenpaul, [08:38]

Memorable Moments and Speaker Quotes

On Drug Price Negotiations:
“They can negotiate some drug prices because of this bill that was signed by former President Joe Biden back in 2022. That was the Inflation Reduction Act.”
— Henry Epp [02:22]

On Feeding America's food distribution transformation:
“Sometimes markets, if they're designed well, can facilitate choice in that way.”
— Canis Prendergast [08:05]

Timestamps for Important Segments

• Medicare’s new drug discounts: [01:14–03:01]
• Trump administration & Paramount’s "Rush Hour" revival: [03:01–04:02]
• Feeding America’s food bank market system: [05:29–08:52]

Tone & Language

• Clear, factual, and brisk—matching the Marketplace style.
• Quotes from guests and insiders add a conversational, practical flair.

Takeaway

The episode presents important shifts in health policy that will directly impact Medicare recipients' costs, provides a quick look at ongoing government influence on major private sector decisions, and spotlights an innovative market mechanism that’s changing how America’s food banks distribute resources—all told with Marketplace’s direct and informative tone.