The 10 Drugs Medicare Selected for Lower Prices in 2026

For millions of Americans, the cost of prescription drugs is a major concern. You clicked because you heard Medicare is taking a historic step to lower prices on ten specific medications. Here, we provide the complete list of those drugs and explain what this change means for you starting in 2026.

The Official List of the First 10 Drugs for Price Negotiation

The primary promise of the new Medicare program is to make essential, high-cost medications more affordable. The Centers for Medicare & Medicaid Services (CMS) has identified the first ten drugs covered under Medicare Part D selected for price negotiation. If you or a loved one uses any of these medications, you could see significant savings in the near future.

Here is the official list announced by CMS:

1. Eliquis (apixaban): Used to prevent blood clots and reduce the risk of stroke in people with atrial fibrillation.
2. Jardiance (empagliflozin): Used to treat type 2 diabetes and reduce the risk of cardiovascular death in adults with both type 2 diabetes and heart disease.
3. Xarelto (rivaroxaban): Another common medication used to prevent and treat blood clots, and to reduce the risk of stroke.
4. Januvia (sitagliptin): Used to help control blood sugar levels in adults with type 2 diabetes.
5. Farxiga (dapagliflozin): Prescribed for type 2 diabetes, heart failure, and chronic kidney disease.
6. Entresto (sacubitril/valsartan): A combination medicine used to treat certain types of heart failure.
7. Enbrel (etanercept): A biologic drug used to treat rheumatoid arthritis, psoriatic arthritis, and other autoimmune conditions.
8. Imbruvica (ibrutinib): A targeted therapy medication used to treat certain types of blood cancers, including mantle cell lymphoma and chronic lymphocytic leukemia.
9. Stelara (ustekinumab): Used to treat several autoimmune disorders, including plaque psoriasis, psoriatic arthritis, Crohn’s disease, and ulcerative colitis.
10. Fiasp; Novolog (insulin aspart): Fast-acting insulins used to manage blood sugar levels in people with type 1 and type 2 diabetes.

Why Are These Drug Prices Changing?

This significant change is a result of the Inflation Reduction Act, a law passed in 2022. For the first time, this law gives Medicare the power to directly negotiate the prices of certain high-cost prescription drugs with pharmaceutical manufacturers.

Previously, Medicare was legally prohibited from negotiating prices. This new program is designed to leverage Medicare’s large purchasing power to bring down costs for both beneficiaries and the government. The goal is to make life-saving medications more accessible and to reduce overall healthcare spending. By targeting some of the most expensive drugs, the program aims to have the biggest impact on people’s wallets.

How Were These 10 Drugs Chosen?

The selection of these specific ten drugs was not random. CMS followed a clear set of criteria outlined in the Inflation Reduction Act. To be eligible for negotiation, a drug had to:

• Be a high-expenditure drug: These ten drugs accounted for over $50 billion in total Part D gross covered prescription drug costs between June 1, 2022, and May 31, 2023.
• Be a single-source drug: The drug has no generic or biosimilar competition on the market.
• Have been approved by the FDA for a long time: The drugs must have been on the market for at least seven years (for small-molecule drugs) or 11 years (for biologics) without competition.

These criteria ensure that the program focuses on medications that have been costly for Medicare and beneficiaries for many years, without the price-lowering effects of market competition.

What Is the Timeline for These Lower Prices?

While the announcement is exciting, it’s important to understand the timeline. The new, lower prices will not be available at the pharmacy counter immediately. The process involves several key steps:

• September 2023: CMS published the list of the first 10 drugs selected.
• Fall 2023 - Summer 2024: CMS and the drug manufacturers will engage in a negotiation process to agree on a new “maximum fair price” for each drug.
• September 1, 2024: The new negotiated prices will be publicly announced.
• January 1, 2026: The new, lower prices officially take effect for all Medicare beneficiaries.

This means you will start seeing the cost savings from these negotiations at the beginning of 2026.

What If Your Medication Isn't on This List?

If you take a costly medication that did not make this initial list, don’t be discouraged. This is just the beginning of a multi-year program. The Inflation Reduction Act has a clear plan to expand the list of negotiated drugs over time:

• For 2027: An additional 15 Part D drugs will be selected for negotiation.
• For 2028: Another 15 drugs (including some from Part B) will be selected.
• For 2029 and beyond: 20 new drugs will be selected for negotiation each year.

This phased approach means that over the next decade, many more high-cost medications will become more affordable for people with Medicare.

Frequently Asked Questions

When will the new prices for these 10 drugs start? The newly negotiated prices for this first group of ten drugs will officially go into effect on January 1, 2026.

How will I know what the new price is? The Centers for Medicare & Medicaid Services (CMS) will publish the “maximum fair price” for each of the ten drugs by September 1, 2024. This will give beneficiaries and healthcare providers time to understand the new costs before they take effect.

Will this negotiation affect my Medicare Advantage or Part D plan? Yes. The negotiated prices will be the maximum that any Part D plan (including standalone plans and those part of a Medicare Advantage plan) can charge. This ensures that all beneficiaries have access to the lower prices, regardless of their specific plan choice.

Why was insulin included on the list? While some insulin products already have a $35 monthly cap under Medicare, the specific Fiasp and Novolog products were included because they still accounted for very high spending. Negotiating their prices could lead to even greater savings for the Medicare program and potentially lower costs for beneficiaries who have not yet met their deductible.