When Medicare price negotiations for 10 popular drugs take effect in 2026, the White House projects savings of $6 billion for taxpayers and $1.5 billion in out-of-pocket costs for Medicare enrollees this year alone. The 10 drugs included in the first round of price negotiations are among the most expensive and most commonly prescribed, costing the program $50 billion a year.

The Inflation Reduction Act gave Medicare the right to negotiate certain drug prices for the first time. In 2026, 10 drugs will be included in the cost-saving measures, with more drugs being added each year.

The Associated Press called the completed negotiations “a milestone for the Medicare program, which provides health insurance to more than 67 million elderly and disabled Americans. For decades, the federal government was prohibited from negotiating with pharmaceutical companies over the prices of their drugs, although it is a routine process for private insurers.”

The White House statement on Thursday said in this first round of negotiations with pharmaceutical companies that the new prices would reduce list prices, which have “steadily increased” since the drugs were introduced, by 38 to 79 percent.

For which medications are prices falling?

These drugs are Medicare Part D drugs, meaning they are on the drug list for insureds who have purchased Part D. The 10 negotiated-price drugs and their savings for 2026 are:

Eliquisis used to prevent and treat blood clots. In 2023, 3.9 million Medicare beneficiaries used the drug, which cost $521 for a 30-day supply in 2023. The negotiated price for it in 2026 is $231, a savings of 56%.

Jardianceagainst diabetes, heart failure and chronic kidney disease. In 2023, nearly 1.9 million Medicare beneficiaries used the drug, which cost $573 for a 30-day supply. In 2026, that prescription will cost $197, a 66% decrease.

Xareltoto prevent and treat blood clots and reduce risk for patients with coronary and peripheral artery disease. In 2023, 1.3 million Medicare beneficiaries used the drug, which cost $517 for a 30-day supply. The new price in 2026 will be $197, a 62% reduction.

Januviafor diabetes, was used by 843,000 Medicare beneficiaries last year and cost $527 for a 30-day supply. In 2026, the price will drop to $113, a 79% drop. That’s the biggest discount in the group.

Farxigafor heart failure, diabetes and chronic kidney disease, was used by nearly 1 million Medicare beneficiaries last year and cost $556 for a 30-day supply. The price of that supply will be $178.50 in 2026, a 68% decrease.

Entryto treat heart failure, was used by 664,000 Medicare beneficiaries last year and cost $628 for a 30-day supply. This amount will drop to $295 in the future, a price reduction of 53%.

Enbrel, for rheumatoid arthritis, psoriasis and psoriatic arthritis was prescribed to 48,000 Medicare beneficiaries in 2023 and cost $7,106 for a 30-day supply. In 2026, the price drops to $2,355, a 67% reduction.

Imbruvicato treat blood cancer, is used by 17,000 Medicare beneficiaries and costs $14,934 a month, but will fall to $9,319 in 2026. That’s a 38% reduction, the smallest of all.

Stelarafor psoriasis, psoriatic arthritis, Crohn’s disease and ulcerative colitis, was used by 23,000 Medicare beneficiaries at a cost of $13,836 per month in 2023. The price will drop to $4,695 for a 30-day supply starting in 2026, a decrease of 66%.

Fiasp, Fiasp FlexTouch, Fiasp PenFill, NovoLog, NovoLog FlexPen and NovoLog PenFillall prescribed for diabetes and used by 785,000 Medicare beneficiaries in 2023 at a price of $495 for a 30-day supply, will be reduced to $119, a price reduction of 76%.

Capped expenses

The White House pointed out that nearly 19 million seniors and other Part D enrollees are expected to save about $400 a year on prescription drugs when the out-of-pocket limit is lowered to $2,000 in 2025. The tenth among them, who receive the most expensive drugs, will save an average of nearly $2,500 a year.

In addition, Medicare will negotiate prices for up to 15 additional drugs covered by Medicare Part D in 2025, up to 15 drugs covered by Parts B and D in 2026, and up to 20 drugs annually thereafter.

While Part D is Medicare’s drug plan, Part B covers physician services, outpatient hospital care, some home care, durable medical equipment, and health services not included in Part A, which is hospital care. Eligible individuals must enroll in the various plans, which, with the exception of Part A, have a monthly premium.