The first 10 drugs subject to new Medicare price negotiations will go into effect on Jan. 1, prompting substantial out-of-pocket savings for certain older Americans who rely on those medications.
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, according to new research from the AARP, a nonprofit representing Americans ages 50 and over.
Moreover, enrollees may pay less than $100 per month for seven of the 10 negotiated drugs next year, AARP’s research found.
The new Medicare Part D prescription drug price negotiations were enacted with the Inflation Reduction Act in 2022. About 9 million Medicare Part D enrollees use the first 10 prescription drugs selected for price negotiations in 2026, according to AARP. The treatments are used for a variety of conditions, including autoimmune diseases, cancer, diabetes and heart disease.
Another 15 drug names are set to see price cuts under Medicare in 2027.
