Medicare Drug Price Negotiations for 2026: What You Need to Know
Big Savings Ahead: 2026 Medicare Drug Price Negotiations
Starting January 1, 2026, Medicare beneficiaries may see meaningful savings at the pharmacy counter. Thanks to provisions in the Inflation Reduction Act (IRA), Medicare will begin implementing negotiated prices on select prescription drugs—targeting those with the highest costs and widespread usage in the Part D program.
The Centers for Medicare & Medicaid Services (CMS) selected 10 brand-name drugs for the first round of negotiations, which will take effect in 2026. These price cuts could benefit millions of Americans enrolled in Medicare drug plans.
What Is Medicare Drug Price Negotiation?
Under the IRA, CMS gained the authority to negotiate directly with drug manufacturers on behalf of Medicare beneficiaries. The goal is to reduce the overall cost of prescription drugs that:
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Have no generic competition,
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Are widely used by people on Medicare, and
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Account for a significant share of Medicare spending.
Negotiated prices are known as Maximum Fair Prices (MFPs) and will be phased in starting with the 2026 plan year.
The 10 Drugs Being Negotiated for 2026
Below is the list of medications whose new, lower Medicare prices will take effect in 2026:
| Drug Name | Common Use |
|---|---|
| Januvia | Type 2 diabetes |
| Farxiga | Diabetes, heart failure, kidney disease |
| Jardiance | Diabetes, heart failure |
| Xarelto | Blood thinner, stroke prevention |
| Eliquis | Blood thinner, atrial fibrillation |
| Entresto | Heart failure |
| Imbruvica | Blood cancers (e.g., leukemia, lymphoma) |
| Stelara | Psoriasis, Crohn’s disease |
| Enbrel | Rheumatoid arthritis, autoimmune disorders |
| Fiasp / NovoLog | Insulin for diabetes |
These drugs were selected based on their high cost to Medicare and frequency of use. Negotiated savings on these medications range from 30% to 79%, depending on the drug.
How Will This Affect You?
If you take one of these medications, here’s what to expect:
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Lower Out-of-Pocket Costs: Starting in 2026, your copay or coinsurance may be significantly reduced (this all depends on the negotiated cost and the 2026 Part D plan costs).
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No Action Needed: The new prices will automatically apply through your Medicare Part D plan. You don’t need to sign up or enroll separately.
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Annual Savings: Some beneficiaries may save hundreds of dollars per year, depending on dosage and usage frequency.
Will More Drugs Be Negotiated?
Yes. CMS has already announced a second round of 15 additional drugs for negotiation, with price reductions taking effect in 2027. These include common medications such as:
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Ozempic and Rybelsus (diabetes),
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Breo Ellipta (asthma),
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Linzess (IBS), and
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Xtandi (prostate cancer).
Need Help Understanding Your Medicare Drug Coverage?
If you live in Kansas or Missouri and would like a personalized review of your Medicare drug coverage, we can help.
Call (913) 232-2006 to speak with a licensed agent
Serving Overland Park, Lenexa, Olathe, Leawood, Prairie Village, Shawnee, and the surrounding metro area.