The Department of Health and Human Services (HHS) has reached agreements for the 10 drugs selected for price negotiation in the Medicare program. Beginning January 1, 2026, people with Medicare Part D coverage will pay lower prices ranging from 38% to 79% off for these selected prescriptions, many of which are used to treat chronic diseases like diabetes and rheumatoid arthritis. The agreements are the result of the Inflation Reduction Act of 2022, which launched the Medicare Drug Price Negotiation Program.

Drug prices continue to skyrocket, especially for the 10 medications being negotiated. The cost of prescriptions has long been a major barrier to care, and a top concern for voters. Between 2018 and 2023, the Office of the Assistant Secretary for Planning and Evaluation (ASPE) found that the 10 Selected Drugs’ list prices increased by as much as 55%. Difficulty affording medications is one of the most commonly-cited challenges voiced by patients, particularly seniors and those with fixed incomes.

 The new negotiated discounts are projected to save $1.5 billion in out-of-pocket costs for Medicare enrollees in 2026. According to HHS, if Medicare had been able to receive these discounted prices last year, the federal government could have saved $6 billion. The Congressional Budget Office estimates the policy will result in about $100 billion in savings over the next ten years, with $3.7 billion of that being felt in the first year. More than half of these savings is accounted for by three drugs: Enbrel, Stelara and Eliquis.

 By February 2025, CMS will select up to 15 more drugs for price negotiations, with the potential to add dozens more by 2029. However, the Agency must first publish their official rationale for the first wave of selected drug negotiated prices becoming effective on January 1st.