Prescription drug costs have long been a burden for Medicare beneficiaries, with many paying hundreds or even thousands of dollars each month for essential medications. The good news is that beginning January 1, 2026, Medicare will implement the first-ever negotiated drug prices under the Inflation Reduction Act. This is a historic moment for seniors and retirees, and it’s expected to save billions of dollars across the program while easing out-of-pocket expenses for individuals.

As your trusted Medicare brokerage, Emerald Medicare is here to walk you through what these changes mean and how they may directly benefit you or your loved ones.

The First 10 Drugs Getting a Price Cut

Medicare selected 10 high-cost, widely used drugs for the first round of negotiated price reductions. These medications treat conditions like diabetes, heart disease, arthritis, blood clots, and cancer—diseases that affect millions of Medicare beneficiaries.

DRUG NAME	2023 PRICE	2026 NEGOTIATED PRICE	Est. Discount
Eliquis	~$521	~$231	~56%
Jardiance	~$573	~$197	~66%
Xarelto	~$517	~$197	~62%
Januvia	~$527	~$113	~79%
Farxiga	~$556	~$178.50	~68%
Entresto	~$628	~$295	~53%
Enbrel	~$7,106	~$2,355	~67%
Imbruvica	~$14,934	~$9,319	~38%
Stelara	~$13,836	~$4,695	~66%
Fiasp/NovoLog	~$495	~$119	~76%

These reductions will bring life-changing relief for many Medicare beneficiaries. For example, someone managing diabetes with Jardiance or NovoLog insulin could save hundreds of dollars every month, while cancer and autoimmune patients may see savings in the thousands. Across the country, these negotiated prices are projected to save Medicare $6 billion, with direct out-of-pocket savings for patients estimated at $1.5 billion annually.

Why 2026 Is Just the Beginning

This first round of negotiations is part of a larger rollout. More drugs will be added to the program in future years. For example, 15 additional medications have already been selected for negotiation and are expected to see lower costs in 2027. These include treatments for diabetes, obesity, and cancer—some of the fastest-rising costs in Medicare.

It’s also important to note that the $2,000 annual out-of-pocket cap for prescription drugs took effect in 2025. Combined with these new price reductions, Medicare beneficiaries will see some of the most significant financial relief in decades.

What You Should Do Now

Check Your Medications: If you take one of the drugs on the 2026 negotiated list, prepare for cost savings beginning in January.
Review Your Plan This Fall: During the Annual Enrollment Period (October 15 – December 7, 2025), plans may adjust formularies and premiums in response to these changes. It’s more important than ever to compare options.
Plan Ahead for 2027 and Beyond: Even if your current prescriptions aren’t on this first list, future rounds of negotiations could impact your costs in the years ahead.

Emerald Medicare Can Help You Lower Your Costs

Drug costs are one of the biggest challenges facing retirees, but these new 2026 changes mark a turning point. At Emerald Medicare, our role is to help you navigate these transitions, understand how your plan may change, and ensure you’re getting the best value available.

If you’re wondering how these price reductions—or the new $2,000 annual cap—will affect your personal coverage, we’re here to help.