Nearly 9 million Medicare Part D enrollees could see substantial savings on prescription medications now that the first Medicare-negotiated drug prices have taken effect, according to a new report from the AARP Public Policy Institute.
The analysis examined the 10 medications included in the first round of Medicare drug price negotiation and found that enrollee cost-sharing will decrease by an average of approximately 50% among standalone Part D plans in five states with high Medicare enrollment.
The Centers for Medicare and Medicaid Services estimates these negotiated prices — which went into effect on Jan. 1 — could save enrollees a collective $1.5 billion in out-of-pocket expenses in 2026. The 10 medications treat a range of common and serious conditions, including heart disease, diabetes, autoimmune diseases and cancer.
The first 10 Medicare-negotiated drugs include widely used medications such as:
- Eliquis for blood clot prevention and treatment
- Jardiance and Januvia for diabetes
- Entresto for heart failure
- Imbruvica for blood cancers
According to AARP:
“Medicare drug price negotiation is currently working as anticipated and will reduce enrollees’ out-of-pocket costs in 2026, likely due to the prevalence of cost-sharing that is directly linked to drug prices.”
The analysis found that the negotiated prices are substantially lower than what private Part D prescription drug plans were previously negotiating on their own.
Additional drugs will be selected and negotiated every year going forward, potentially expanding savings for more Medicare beneficiaries.
However, the report warns that current proposals to exempt more drugs from Medicare drug price negotiation “will negatively affect Part D enrollees by effectively eliminating the possibility of lower cost-sharing that could help improve enrollee access to those products.”
Here is the full list of medications that are being included in the first round of Medicare drug price negotiations:
- Eliquis
- Enbrel
- Entresto
- Farxiga
- Fiasp and NovoLog
- Imbruvica
- Januvia
- Jardiance
- Stelara
- Xarelto
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