Medicare Drug Price Cuts Take Effect: 10 Prescriptions Cost 50% Less in 2026
Ten high-cost prescription drugs now have federally negotiated prices, effective January 1, 2026. Medicare Part D enrollees using these medications could save more than 50% on out-of-pocket costs, with an estimated $1.5 billion in total savings across the program.
The first 10 prescription drugs subject to Medicare price negotiations go into effect on Jan. 1, and Medicare beneficiaries will see substantially lower costs for those treatments in 2026. The discounts range from 38% to 79% off the 2023 list prices.
Enrollees in Medicare Part D prescription drug plans may see their out-of-pocket costs for the negotiated drugs fall by an average of more than 50% in 2026, and enrollees may pay less than $100 per month for 7 of the 10 negotiated drugs next year. These 15 drugs include treatments for type 2 diabetes, HIV, asthma, arthritis, psoriasis, Crohn's disease, several types of cancer, and other conditions.
What's Coming Next
Negotiated lower prices on 15 additional drugs are expected to save $8.5 billion to $12 billion a year for Part D enrollees when they take effect in 2027. Part D enrollees will face a $2,100 cap on annual out-of-pocket prescription drug expenses in 2026, up from $2,000 in 2025.
If you are over 65 or eligible for Medicare and take one of the 10 negotiated drugs (such as Ozempic, Eliquis, Xarelto, Entyvio, Fiasp, Humira, Enbrel, Januvia, Keytruda, or Opdivo), you should already be seeing lower costs on your 2026 prescriptions—the new prices took effect January 1. If you haven't noticed the savings, double-check your pharmacy's pricing or speak with your Medicare plan to confirm they're applying the negotiated price. More drugs will be added to this program each year.
Sources
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