Your Guide to Medicare's 2026 Prescription Drug Discounts
Hoping to lower your prescription drug costs? You’re in the right place. Thanks to new government initiatives, the prices for some of the most common medications are set to drop in 2026. This guide breaks down which drugs are on the list and explains exactly how you can check for future savings.
Why Are Prescription Prices Changing?
The changes you’re hearing about are part of the Inflation Reduction Act, a law that gave Medicare the power to negotiate drug prices directly with manufacturers for the first time. The goal is simple: to make essential medications more affordable for millions of seniors.
This negotiation process is rolling out in phases. The first group of drugs was announced in 2023, with the negotiated prices scheduled to take effect on January 1, 2026. This is just the beginning, as more drugs will be added to the negotiation list in the years to follow.
The First 10 Drugs with Negotiated Prices for 2026
The Centers for Medicare & Medicaid Services (CMS) identified the first 10 drugs for price negotiation based on how much Medicare Part D spent on them. If you take any of the following medications, you are likely to see lower out-of-pocket costs starting in 2026.
Here is the official list of the first 10 drugs selected for negotiation:
- Eliquis: A common blood thinner used to prevent strokes and blood clots.
- Jardiance: Used to treat type 2 diabetes and reduce the risk of cardiovascular events.
- Xarelto: Another widely used blood thinner to treat and prevent blood clots.
- Januvia: A medication for managing blood sugar levels in people with type 2 diabetes.
- Farxiga: Used to treat type 2 diabetes, heart failure, and chronic kidney disease.
- Entresto: A prescription medication used to treat certain types of heart failure.
- Enbrel: An injectable biologic drug used to treat rheumatoid arthritis and other autoimmune conditions.
- Imbruvica: A cancer medication used to treat certain types of leukemia and lymphoma.
- Stelara: Used to treat plaque psoriasis, psoriatic arthritis, Crohn’s disease, and ulcerative colitis.
- Insulin Aspart (sold as Fiasp and Novolog): A rapid-acting insulin used to manage blood sugar in people with diabetes.
It is important to remember that the final negotiated prices for these drugs will be announced by September 1, 2024. Those new, lower prices will then be available to Medicare beneficiaries starting in 2026.
How to Check if Your Medications Are Included
The most direct way to see if you’ll benefit is to compare your current prescription list with the one above. However, since this program will expand, here are the steps you can take to stay informed about current and future discounts.
1. Review the Current and Future Lists
The list of 10 drugs above is for the first round of negotiations, with prices effective in 2026. More drugs will be added over time:
- For 2027: Up to 15 more Part D drugs will be selected.
- For 2028: Up to 15 more Part D and Part B drugs will be selected.
- For 2029 and beyond: Up to 20 more Part D and Part B drugs will be selected each year.
The best place to find official updates is the source. Keep an eye on announcements from the official Medicare.gov and CMS.gov websites. They will publish the new lists of selected drugs as they are chosen.
2. Talk to Your Doctor or Pharmacist
Your healthcare providers are your best resource. When you have your annual check-up or refill a prescription, ask them about the Medicare drug negotiation program. They may have information about whether your specific medications are likely to be included in future negotiation rounds. They can also discuss lower-cost alternatives, such as generics, that might be available to you right now.
3. Use the Medicare Plan Finder Tool
During the annual Open Enrollment Period (October 15 to December 7), you can use the official Medicare Plan Finder tool on the Medicare.gov website. When the new negotiated prices are finalized, they will be factored into the costs for Medicare Part D and Medicare Advantage plans. The Plan Finder tool allows you to enter your specific medications and find the plan in your area that offers the best coverage and lowest out-of-pocket costs for you.
Other Important Medicare Cost-Saving Changes
The drug price negotiation is just one part of a larger effort to reduce healthcare costs for seniors. The Inflation Reduction Act also introduced other key benefits that are already in effect or coming soon:
- Capped Insulin Costs: As of 2023, copays for a month’s supply of any insulin covered by a Medicare Part D plan are capped at $35.
- Free Recommended Vaccines: Adult vaccines recommended by the Advisory Committee on Immunization Practices, like the shingles vaccine, are now available at no cost to you.
- Cap on Out-of-Pocket Drug Costs: Starting in 2025, there will be a $2,000 annual cap on what you have to pay out-of-pocket for your Part D prescription drugs. This will provide significant financial protection for those with very high medication costs.
By staying informed about these changes, you can better manage your health and your budget in the years ahead.
Frequently Asked Questions
When do the new prices for the first 10 drugs actually start? The newly negotiated, lower prices for the first 10 drugs will officially take effect on January 1, 2026.
How does Medicare decide which drugs to negotiate? Drugs are selected based on several factors. They must be single-source brand-name drugs without generic or biosimilar competition. They are then ranked by total Medicare spending. The highest-spending drugs that meet the criteria are chosen for negotiation first.
Does this price negotiation affect Medicare Advantage plans? Yes. These changes apply to prescription drugs covered under Medicare Part D. This includes standalone Part D plans as well as the prescription drug coverage that is part of most Medicare Advantage (Part C) plans.
What if my most expensive drug isn’t on the list? Even if your medication isn’t on the initial list, it could be selected in future years. In the meantime, the new $2,000 out-of-pocket cap on Part D spending, which starts in 2025, will provide a crucial safety net and could significantly lower your annual drug costs.