For the first time in the program’s 60-year history, Medicare can now negotiate directly with drug companies to lower prices. The first batch of negotiated prices took effect on January 1, 2026. If you take any of the 10 drugs on the list, your costs may have already dropped.
Here is what happened, which drugs are affected, and what you need to do to make sure you are getting the lower price.
How We Got Here
The Inflation Reduction Act, signed in August 2022, gave Medicare the power to negotiate prices on certain expensive drugs. Before this law, Medicare had to accept whatever price drug makers set. The United States was the only major country where the government could not bargain on drug prices for its largest insurance program.
The first round of negotiations began in 2023. Medicare selected 10 drugs that cost the program the most money. After months of back-and-forth with manufacturers, the new prices were announced in August 2024. Those prices are now in effect for 2026.
The 10 Drugs and Their New Prices
Here are the 10 medications with negotiated prices, along with the estimated savings for a 30-day supply:
- Eliquis (blood thinner): Was up to $521 per month out of pocket. Negotiated price cuts costs by about 56%.
- Jardiance (diabetes): Was up to $573 per month. Negotiated price cuts costs by about 66%.
- Xarelto (blood thinner): Was up to $517 per month. Negotiated price cuts costs by about 62%.
- Januvia (diabetes): Was up to $527 per month. Negotiated price cuts costs by about 63%.
- Farxiga (diabetes/heart failure): Was up to $556 per month. Negotiated price cuts costs by about 68%.
- Entresto (heart failure): Was up to $628 per month. Negotiated price cuts costs by about 53%.
- Enbrel (rheumatoid arthritis): Was up to $7,106 per month. Negotiated price cuts costs by about 64%.
- Imbruvica (blood cancer): Was up to $14,934 per month. Negotiated price cuts costs by about 38%.
- Stelara (psoriasis/Crohn’s): Was up to $13,836 per month. Negotiated price cuts costs by about 66%.
- Fiasp/NovoLog insulin (diabetes): Was up to $495 per month. Negotiated price cuts costs by about 76%.
These are the maximum fair prices Medicare will pay. Your actual copay depends on your specific Part D plan.
What This Means for Your Wallet
The savings are real, but they show up in different ways depending on your situation.
If you take one of these 10 drugs: Your copay or coinsurance at the pharmacy should be lower than it was last year. You do not need to do anything special. The new price is automatic.
If you have a Part D plan with a deductible: The lower drug price means you will spend less before meeting your deductible. That means you reach the coverage phase faster and start paying lower copays sooner.
Combined with the $2,000 cap: Remember, Part D now has a $2,000 annual cap on out-of-pocket drug spending. The negotiated prices make it even less likely that you will hit that cap. If you were spending $5,000 or $6,000 a year on medications, the combination of negotiated prices and the spending cap could save you thousands.
The Centers for Medicare and Medicaid Services (CMS) estimates that the negotiated prices will save Medicare $6 billion in the first year alone. For individual patients, the savings range from a few hundred to several thousand dollars per year.
More Drugs Are Coming
This first round covered 10 drugs. But the law requires Medicare to negotiate prices on more drugs each year:
- 2027: 15 additional drugs will have negotiated prices (these were selected in 2025)
- 2028: 15 more drugs added
- 2029 and beyond: 20 new drugs added each year
By 2029, Medicare will have negotiated prices on at least 60 medications. The program prioritizes drugs that cost Medicare the most money and have been on the market long enough that their patents are not brand-new.
The second batch of 15 drugs, announced in early 2025, includes several widely used medications for heart disease, cancer, and autoimmune conditions. Those negotiated prices will take effect in January 2027.
What About Drug Company Lawsuits?
Several drug manufacturers sued the federal government to block the negotiations. They argued that forcing companies to accept lower prices was unconstitutional. As of early 2026, federal courts have rejected most of these challenges. The negotiations are moving forward as planned.
Some critics worry that lower prices could reduce drug company profits and slow down research into new treatments. Supporters point out that these companies still earn billions in profit and that many of the drugs on the list have been on the market for over a decade.
How to Check Your Savings
If you take any of the 10 negotiated drugs, here is how to see your new costs:
- Log in to Medicare.gov. Go to your plan details and check the formulary. Your drug’s cost-sharing tier may have changed.
- Call your Part D plan. Ask the customer service number on the back of your plan card. Ask what your copay is for the specific drug you take.
- Ask your pharmacist. When you pick up your next refill, ask the pharmacist to show you the price before and after the negotiation.
- Call 1-800-MEDICARE (1-800-633-4227). Medicare counselors can help you understand your costs and compare plans if you think you could save more by switching.
Do Not Confuse This With the Insulin Cap
The $35 monthly insulin cap is a separate policy that also came from the Inflation Reduction Act. The insulin cap applies to all insulin products covered by Medicare Part D. The negotiated drug prices apply to 10 specific medications. Both policies are in effect at the same time.
If you use insulin, you benefit from the $35 cap. If you also take Eliquis or Jardiance, you benefit from both the cap and the negotiated price.
What You Should Do Now
Step 1: Check whether any of your medications are on the list of 10 negotiated drugs.
Step 2: Compare your January and February 2026 pharmacy receipts to the same months last year. You should see a difference.
Step 3: If your costs have not gone down and you take one of the listed drugs, call your Part D plan and ask why. There may be a formulary issue or a processing delay.
Step 4: During the next Open Enrollment Period (October 15 to December 7, 2026), compare plans on Medicare.gov. The negotiated prices may make some plans a better deal than others.
Step 5: If you are struggling to afford any medication, call the Medicare Extra Help program at 1-800-772-1213. You may qualify for additional assistance that covers premiums, deductibles, and copays.
The Bottom Line
Medicare drug price negotiation is no longer a political debate. It is real, and it is saving people money right now. If you take Eliquis, Jardiance, Xarelto, Januvia, Farxiga, Entresto, Enbrel, Imbruvica, Stelara, or Fiasp/NovoLog insulin, check your costs. You may be paying less already.
And with more drugs joining the negotiated list each year, the savings will only grow from here.
Reported by Margaret Chen with additional research from the SeniorDaily editorial team. For corrections or updates, please contact us.
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