For the first time, Medicare can negotiate drug prices. These 10 medications now have lower prices for Medicare beneficiaries, with savings up to 79%.
The Inflation Reduction Act (IRA) gave Medicare the power to directly negotiate prices with pharmaceutical manufacturers. Starting in 2026, the first batch of 10 high-cost drugs will have their prices negotiated by Medicare, resulting in significant savings for beneficiaries.
These are not generic drugs—they're still brand-name medications. The difference is that Medicare beneficiaries now get the negotiated price, instead of paying full market rates.
Effective January 1, 2026 for Medicare Part D beneficiaries
| Drug Name | Treats | Old Price (30-day) | Negotiated Price (MFP) | Savings |
|---|---|---|---|---|
| Eliquis | Blood clots, stroke prevention | $521 | $231 | 56% |
| Jardiance | Type 2 diabetes, heart disease | $573 | $197 | 66% |
| Xarelto | Blood clots, stroke prevention | $517 | $197 | 62% |
| Januvia | Type 2 diabetes | $527 | $113 | 79% |
| Farxiga | Type 2 diabetes, heart failure, CKD | $556 | $178 | 68% |
| Entresto | Heart failure | $588 | $295 | 50% |
| Enbrel | Rheumatoid arthritis, psoriasis | $7,106 | $2,355 | 67% |
| Imbruvica | Blood cancers (CLL, MCL, WM) | $14,934 | $9,319 | 38% |
| Stelara | Psoriasis, Crohn's disease, UC | $13,836 | $4,695 | 66% |
| Fiasp/NovoLog | Type 1 & Type 2 diabetes (insulin) | $495 | $119 | 76% |
Note: MFP = Maximum Fair Price (the negotiated price for 30-day supplies). Prices shown are per 30-day supply and are effective January 1, 2026. Actual out-of-pocket costs may vary based on your specific Medicare plan.
These 10 drugs represent some of the most expensive medications in the U.S. Many beneficiaries spend thousands of dollars per year on a single drug. With these negotiated prices, seniors can:
Who gets these negotiated prices?
If you have Medicare prescription drug coverage (Part D), these prices apply to you when you fill prescriptions at the pharmacy. You'll automatically receive the negotiated price.
If you receive drugs through Part B (administered in an outpatient setting like a hospital or infusion center), the negotiated prices apply to those settings as well.
These prices are available only to Medicare beneficiaries. However, manufacturers often offer patient assistance programs and coupons for uninsured or underinsured patients. Check the drug's website.
The negotiated prices became effective January 1, 2026. If you're a Medicare beneficiary, you should see the lower prices automatically when you fill prescriptions starting in January.
How the cap works with negotiated prices
Starting in 2024, Medicare Part D beneficiaries have an annual out-of-pocket spending cap of $2,000. This is a major benefit that works alongside these negotiated prices.
Impact of negotiated prices: Lower negotiated prices mean you'll spend less out of pocket and reach that $2,000 cap slower. This provides ongoing savings throughout the year.
The Inflation Reduction Act aims to reduce healthcare costs and increase medication affordability for seniors. By allowing Medicare to negotiate, Congress hoped to lower drug prices that have been rising much faster than inflation.
Yes. The IRA allows Medicare to negotiate 15 drugs per year starting in 2026, 20 drugs per year starting in 2029, and 20 drugs per year thereafter. By 2030, up to 60 drugs could be negotiated.
No—all 10 of these are brand-name drugs still under patent protection. Generic versions won't be available for years. These negotiations provide savings on the only available version.
Your savings depend on your specific Medicare plan and how much of the drug you use. Many beneficiaries will save hundreds to thousands annually. Your pharmacist can calculate your actual out-of-pocket cost based on your plan.
No. If you have Medicare Part D or Part B coverage, you'll automatically receive the negotiated price. Just fill your prescriptions as normal—the pharmacy will apply the negotiated rate.
These negotiated prices apply only to Medicare beneficiaries. Employer plans are not affected by these negotiations. If you have employer coverage, contact your plan administrator about prices for these drugs.
Medical Disclaimer
This article provides information about Medicare drug price negotiations for educational purposes only. It is not medical advice. Always consult your healthcare provider or pharmacist before starting, stopping, or changing any medication. The prices and details shown are current as of March 2026 but may change. For the most up-to-date information, visit Medicare.gov or call 1-800-MEDICARE.