On August 15, the Centers for Medicare & Medicaid Services (CMS) revealed the 2026 Medicare drug prices for 10 widely used and costly medications, marking the outcome of their negotiation efforts. As a result, many Medicare beneficiaries can anticipate substantial out-of-pocket savings!
Back in 2023, CMS identified the first 10 drugs for which Medicare would negotiate prices with manufacturers. According to the established Medicare drug price negotiation timeline, these discussions concluded on August 1, 2024.
2026 CMS-Negotiated Prescription Drug Prices The table below showcases the maximum fair prices negotiated by Medicare for the first 10 drugs, all of which are among the top spenders in Medicare Part D. When these prices take effect in 2026, beneficiaries could see savings ranging from hundreds to thousands of dollars on 30-day supplies, with total out-of-pocket savings estimated at $1.5 billion for the year! The price reductions for these 10 drugs under the Medicare Drug Price Negotiation Program range between 38% and 79%.
2026 Maximum Fair Prices for Medicare-Negotiated Drugs
| Drug Name Participating Manufacturer |
Commonly Treated Conditions | Number of Medicare Beneficiaries Who Used the Drug in 2023 | Drug List Price for a 30-Day Supply in 2023 | Negotiated Drug List Price for a 30-Day Supply in 2026 | Savings |
|---|---|---|---|---|---|
| Eliquis Bristol Myers Squibb |
Prevention and treatment of blood clots | 3,928,000 | $521 | $231 | $290 (-56%) |
| Enbrel Immunex Corporation |
Rheumatoid arthritis; Psoriasis; Psoriatic arthritis | 48,000 | $7,106 | $2,355 | $4,751 (-67%) |
| Entresto Novartis Pharms Corp |
Heart failure | 664,000 | $628 | $295 | $333 (-53%) |
| Farxiga AstraZeneca AB |
Diabetes; Heart failure; Chronic kidney disease | 994,000 | $556 | $178.50 | $377.50 (-68%) |
| Fiasp; Fiasp FlexTouch; Fiasp PenFill; NovoLog; NovoLog FlexPen; NovoLog PenFill Novo Nordisk Inc |
Diabetes | 785,000 | $495 | $119 | $376 (-76%) |
| Imbruvica Pharmacyclics LLC |
Blood cancers | 17,000 | $14,934 | $9,319 | $5,615 (-38%) |
| Januvia Merck Sharp Dohme |
Diabetes | 843,000 | $527 | $113 | $414 (-79%) |
| Jardiance Boehringer Ingelheim |
Diabetes; Heart failure | 1,883,000 | $573 | $197 | $376 (-66%) |
| Stelara Janssen Biotech, Inc. |
Psoriasis; Psoriatic arthritis; Crohn’s disease; Ulcerative colitis | 23,000 | $13,836 | $4,695 | $9,141 (-66%) |
| Xarelto Janssen Pharms |
Prevention and treatment of blood clots; Reduction of risk for patients with coronary or peripheral artery disease | 1,324,000 | $517 | $197 | $320 (-62%) |
As long as a drug remains part of the Medicare Drug Price Negotiation Program, the negotiated discount will continue to apply. Each year after the drug’s initial inclusion, CMS will adjust the price based on the annual percentage increase in the Consumer Price Index for all urban consumers. Additionally, the price may be updated through further negotiations between CMS and the drug manufacturers.
Is Participation in the Medicare Drug Price Negotiation Program Mandatory for Manufacturers? No, participation in the CMS drug price negotiation program was not mandatory for manufacturers. Drug companies had the option to voluntarily engage in the program.
For those that chose to participate, they are required to ensure that the negotiated prices are available to beneficiaries and all entities (e.g., pharmacies, mail-order services) that dispense the drugs.
The Future of Medicare Drug Price Negotiations The Inflation Reduction Act of 2022 empowered CMS to negotiate the prices of certain high-expenditure drugs, aiming to make prescriptions more affordable for Medicare beneficiaries. The initial price reductions for these first 10 drugs are just the beginning.
In May, CMS released draft guidance on the upcoming 2027 Medicare drug price negotiations.
In 2025, Medicare will negotiate the prices of up to 15 additional Part D drugs for 2027. By 2026, they’ll tackle the pricing of up to another 15 Part B or D drugs for 2028. Each year following, Medicare plans to negotiate the prices of up to 20 more Part B or D drugs.
These continued negotiations are expected to deliver even greater savings for Part D beneficiaries!
With the announcement of the maximum fair prices for the first 10 drugs in the Medicare Drug Price Negotiation Program, it’s clear that Part D beneficiaries can look forward to significant out-of-pocket savings in the years to come.
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