SALT LAKE CITY — When Medicare drug price negotiations for 10 popular medications take effect in 2026, the White House predicts $6 billion savings for taxpayers and $1.5 billion savings in out-of-pocket costs for enrollees in Medicare's drug program in that year alone. The 10 drugs included in the first round of price negotiations are among the most expensive and most prescribed, costing the program $50 billion a year.
The Inflation Reduction Act gave Medicare the right to negotiate some drug prices for the first time ever. In 2026, 10 drugs will be included in the cost-saving effort, which will expand annually to include other medications.
The Associated Press called the completed negotiations "a landmark deal for the Medicare program, which provides health care coverage for more than 67 million older and disabled Americans. For decades, the federal government had been barred from bartering with pharmaceutical companies over the price of their drugs, even though it's a routine process for private insurers."
In this first round of negotiation with the drug companies, the White House announcement Thursday said that new prices cut the list prices — which have "steadily increased" as long as the drugs have been on the market — between 38% and 79%.
Which drugs' prices are dropping?
These drugs are all Medicare Part D drugs, which means they're on the formulary for enrollees who have purchased Part D. The 10 price-negotiated drugs and their savings for 2026 are:
Eliquis, used to prevent and treat blood clots. In 2023, 3.9 million Medicare enrollees used the drug, which in 2023 cost $521 for a 30-day supply. The negotiated price for that in 2026 is $231, a 56% savings.
Jardiance, for diabetes, heart failure and chronic kidney disease. In 2023, nearly 1.9 million Medicare enrollees used the drug, which cost $573 for a 30-day supply. In 2026, that prescription will cost $197, down 66%.
Xarelto, for prevention and treatment of blood clots and reduced risk for patients with coronary and peripheral artery disease. In 2023, 1.3 million Medicare enrollees used the drug, which cost $517 for a 30-day supply. The new price in 2026 will be $197, which is a 62% reduction.
Januvia, for diabetes, was used by 843,000 Medicare enrollees last year at a cost of $527 for a 30-day supply. In 2026, the price will drop to $113, down 79%. That is the largest discount in the group.
Farxiga, for heart failure, diabetes and chronic kidney disease, was used by nearly 1 million Medicare enrollees last year, at a cost of $556 for a 30-day supply. The price for that supply will be $178.50 in 2026, which is down 68%.
Entresto, for heart failure, was used by 664,000 Medicare enrollees last year and cost $628 for a 30-day supply, which will decrease to $295, a 53% drop in price.
Enbrel, for rheumatoid arthritis, psoriasis and psoriatic arthritis, was prescribed for 48,000 Medicare enrollees in 2023 at a cost of $7,106 for a 30-day supply. In 2026, the price drops to $2,355, a 67% decrease.
Imbruvica, to treat blood cancers, used by 17,000 Medicare enrollees, cost $14,934 a month, but will drop to $9,319 in 2026. That's a 38% decrease, which is the smallest decrease of the bunch.
Stelara, for psoriasis, psoriatic arthritis, Crohn's disease and ulcerative colitis, was used by 23,000 Medicare enrollees in 2023 at a cost of $13,836 a month. The price will drop to $4,695 for a 30-day supply, down 66% starting in 2026.
Fiasp, Fiasp FlexTouch, Fiasp PenFill, NovoLog, NovoLog FlexPen and NovoLog PenFill, all prescribed for diabetes and used in 2023 by 785,000 Medicare enrollees at a cost of $495 for a 30-day supply, will decrease to $119, which is a 76% decrease in price.
Capped expenses
The White House noted that close to 19 million seniors and other participants in Part D are expected to save about $400 a year on prescription drugs when the out-of-pocket limit drops to $2,000 in 2025. The 1 in 10 of them with the highest-priced drugs will save closer to an average of $2,500 a year.
Also in 2025, Medicare will negotiate the price of as many as 15 other drugs covered under Part D Medicare, up to 15 Part B and D drugs in 2026 and up to 20 drugs annually after that.
While Part D is Medicare's drug plan, Part B covers physicians services, outpatient hospital, some home health, durable medical equipment and health services not included in Part A, which is hospital coverage. Eligible individuals have to enroll in the different plans, which, with the exception of Part A, have a monthly premium.
