Lower drug prices are finally coming to Medicare. Here’s what to expect in 2026
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If the cost of your medications has ever made you pause at the pharmacy counter, you’re not alone.
Millions of older adults on Medicare have faced steadily rising drug prices, often forcing painful decisions about what to prioritize.
But starting in 2026, relief is on the way.
Thanks to a historic shift in Medicare policy, the federal government will begin negotiating directly with drug manufacturers for the first time—bringing down prices on some of the most commonly used prescription medications.
Here’s what this change means for you and how to prepare.
In 2022, Congress passed a groundbreaking law that granted Medicare the power to negotiate prices for certain high-cost drugs—something it had previously been prohibited from doing.
The new rules allow the Secretary of Health and Human Services to work directly with drugmakers to bring down prices on select brand-name medications that have no generic alternatives and are widely used by Medicare beneficiaries.
Advocates like AARP pushed hard for this change, and it’s finally becoming a reality in 2026.
The first round of negotiations covers 10 widely used drugs that treat conditions like diabetes, heart disease, and blood clots.
Among the most notable:
In 2023, Medicare spent over $4 billion on Januvia for 850,000 people.
The upcoming negotiated price will cut the monthly cost from $527 to just $113—a 79% reduction.
Eliquis, taken by nearly 4 million Medicare users, will drop from $521 to $231 per month, a 56% decrease.
If these prices had been in place last year, Medicare would have saved about $6 billion on just these 10 medications.
If you’re enrolled in Medicare Part D—whether through a stand-alone plan or a Medicare Advantage plan with drug coverage—you don’t need to do anything extra.
If you take one of the selected medications, the reduced price will automatically show up in your pharmacy costs.
The Centers for Medicare & Medicaid Services (CMS) will continue to update and publish these negotiated prices each year, so you can expect transparency and consistency moving forward.
This is just the beginning.
Negotiations are already underway for 15 additional medications that will see lower prices in 2027.
These next-round drugs account for roughly $41 billion in Medicare spending and help treat chronic conditions such as cancer, asthma, and more diabetes cases.
By 2028, Medicare will start negotiating prices for certain Part B drugs, which are typically administered in a doctor’s office or outpatient setting.
By 2029, at least 20 drugs will be added to the list each year.
For older adults, prescription drugs are often essential, not optional.
An AARP survey found that more than 80% of Americans over 50 regularly take medications.
High costs have long forced many to skip doses, delay refills, or stretch prescriptions dangerously.
With Medicare’s new negotiation power, the goal is to ease financial pressure and support better health.
CMS estimates that the 2026 changes alone could save beneficiaries around $1.5 billion.
This shift in Medicare pricing marks a meaningful step toward making essential medications more affordable for millions of older adults.
As more drugs are added to the program in the coming years, the savings could continue to grow—not just for individuals, but for the entire healthcare system.
Staying informed and engaged can help you take full advantage of these changes and make the most of your Medicare coverage moving forward.
Read next:
Do you take any of the medications listed for 2026? Have you struggled with high drug prices in the past? We’d love to hear your story. Sharing your experiences can help others in the community navigate the changes and prepare for what’s ahead.
Millions of older adults on Medicare have faced steadily rising drug prices, often forcing painful decisions about what to prioritize.
But starting in 2026, relief is on the way.
Thanks to a historic shift in Medicare policy, the federal government will begin negotiating directly with drug manufacturers for the first time—bringing down prices on some of the most commonly used prescription medications.
Here’s what this change means for you and how to prepare.
Many older adults rely on daily medications—these upcoming price cuts aim to make vital prescriptions more affordable and accessible. Image Source: Pexels / cottonbro studio.
The law behind the change
In 2022, Congress passed a groundbreaking law that granted Medicare the power to negotiate prices for certain high-cost drugs—something it had previously been prohibited from doing.
The new rules allow the Secretary of Health and Human Services to work directly with drugmakers to bring down prices on select brand-name medications that have no generic alternatives and are widely used by Medicare beneficiaries.
Advocates like AARP pushed hard for this change, and it’s finally becoming a reality in 2026.
Also read: Changes ahead for Medicare Advantage in 2026
The first 10 drugs affected
The first round of negotiations covers 10 widely used drugs that treat conditions like diabetes, heart disease, and blood clots.
Among the most notable:
- Eliquis – used to prevent and treat blood clots
- Enbrel – prescribed for rheumatoid arthritis, psoriasis, and psoriatic arthritis
- Entresto – helps manage heart failure
- Farxiga – treats diabetes, heart failure, and chronic kidney disease
- Fiasp and NovoLog – fast-acting insulin options for diabetes management
- Imbruvica – used in the treatment of certain blood cancers
- Januvia – helps control blood sugar levels in people with diabetes
- Jardiance – used for diabetes, heart failure, and chronic kidney disease
- Stelara – treats psoriasis, psoriatic arthritis, Crohn’s disease, and ulcerative colitis
- Xarelto – prescribed for preventing and treating blood clots
In 2023, Medicare spent over $4 billion on Januvia for 850,000 people.
The upcoming negotiated price will cut the monthly cost from $527 to just $113—a 79% reduction.
Eliquis, taken by nearly 4 million Medicare users, will drop from $521 to $231 per month, a 56% decrease.
If these prices had been in place last year, Medicare would have saved about $6 billion on just these 10 medications.
Also read: The hidden Medicare gaps that could drain your retirement savings
What it means for you
If you’re enrolled in Medicare Part D—whether through a stand-alone plan or a Medicare Advantage plan with drug coverage—you don’t need to do anything extra.
If you take one of the selected medications, the reduced price will automatically show up in your pharmacy costs.
The Centers for Medicare & Medicaid Services (CMS) will continue to update and publish these negotiated prices each year, so you can expect transparency and consistency moving forward.
2026 Medicare pricing for 10 widely used medications. The amounts listed reflect the cost of a 30-day supply under the new negotiated rates. Image Source: Centers for Medicare & Medicaid Services.
Also read: When to sign up for Medicare: Key dates and tips to avoid penalties
What’s ahead: more discounts, more drugs
This is just the beginning.
Negotiations are already underway for 15 additional medications that will see lower prices in 2027.
These next-round drugs account for roughly $41 billion in Medicare spending and help treat chronic conditions such as cancer, asthma, and more diabetes cases.
By 2028, Medicare will start negotiating prices for certain Part B drugs, which are typically administered in a doctor’s office or outpatient setting.
By 2029, at least 20 drugs will be added to the list each year.
Also read: Are you unknowingly falling for Medicare scams? Here’s how to protect yourself
Why this change matters
For older adults, prescription drugs are often essential, not optional.
An AARP survey found that more than 80% of Americans over 50 regularly take medications.
High costs have long forced many to skip doses, delay refills, or stretch prescriptions dangerously.
With Medicare’s new negotiation power, the goal is to ease financial pressure and support better health.
CMS estimates that the 2026 changes alone could save beneficiaries around $1.5 billion.
What you should do now
- Review your prescriptions. If you take one of the first 10 drugs, talk to your doctor or pharmacist about what changes to expect.
- Double-check your plan. Use Medicare open enrollment to confirm your plan covers your medications at the best price.
- Stay updated. New drugs will be added to the negotiated list each year. Keep an eye on CMS announcements or AARP updates.
This shift in Medicare pricing marks a meaningful step toward making essential medications more affordable for millions of older adults.
As more drugs are added to the program in the coming years, the savings could continue to grow—not just for individuals, but for the entire healthcare system.
Staying informed and engaged can help you take full advantage of these changes and make the most of your Medicare coverage moving forward.
Read next:
- Medicare covers 10 surprising services for free—are you missing out?
- Medicare bill could protect home health care access for millions
- Why reviewing your Medicare plan every year could save you money and stress
Do you take any of the medications listed for 2026? Have you struggled with high drug prices in the past? We’d love to hear your story. Sharing your experiences can help others in the community navigate the changes and prepare for what’s ahead.
