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Medicare’s First Negotiated Drug Prices Take Effect Jan. 1, Cutting 2026 Costs

AARP projects roughly 50% lower out-of-pocket spending in stand-alone Part D plans with CMS estimating $1.5 billion in enrollee savings.

Overview

  • Price reductions apply to 10 widely used medicines, including Eliquis, Jardiance, Xarelto, Januvia, Farxiga, Entresto, Enbrel, Imbruvica, Stelara and NovoLog.
  • Nearly 9 million Medicare beneficiaries used these drugs, and CMS says the new prices will reduce their 2026 out-of-pocket costs by about $1.5 billion.
  • AARP’s analysis of stand-alone Part D plans in five large states finds average cost sharing will fall by about half in 2026, with seven of the drugs dropping below $100 per month.
  • Savings will vary by plan and drug, and patients on the three costliest medicines—Enbrel, Imbruvica and Stelara—may still face roughly $600 to $2,800 in monthly costs.
  • The Part D annual out-of-pocket cap is $2,100 in 2026, and all studied stand-alone plans will cover all 10 drugs; a separate, later round covering 15 additional drugs, including GLP‑1s, is projected to cut total spending by about 44% (roughly $12 billion).