In a historic first, the Biden-Harris administration today announced the results of the first round of drug price negotiations made possible by the Inflation Reduction Act (IRA). For 2026, the first year the prices take effect, the administration projects that Medicare beneficiaries will save $1.5 billion in out-of-pocket costs. In total, Medicare is expected to save at least $6 billion in 2026 through the price reductions on 10 drugs. The savings will continue to increase in subsequent years.
The drugs selected for negotiation are associated with high Medicare spending and a lack of competition, among other issues. The resulting list includes drugs relied on by 8.8 million Medicare beneficiaries in 2023 to treat conditions such as cancer, diabetes, blood clots, heart failure, autoimmune diseases and chronic kidney disease.
As requested by the IRA, the government estimated the value of the drugs and set a fairer price rather than simply allowing drug manufacturers to set their prices as they saw fit.
As the following graph shows, the list prices for these drugs are reduced by 38-79%.
Drug name | Frequently treated diseases | Number of Medicare beneficiaries who used the drug in 2023 | Drug list price 2023 for 30-day supply | Negotiated price for 2026 for 30-day delivery | Savings (%) |
Eliquis | Prevention and treatment of blood clots | 3,928,000 | 521 $ | 231 US dollars | 290 USD (-56%) |
Jardiance | Diabetes; Heart failure; Chronic kidney disease | 1,883,000 | 573 $ | 197$ | 376 USD (-66%) |
Xarelto | Prevention and treatment of blood clots; risk reduction for patients with coronary or peripheral arterial disease | 1,324,000 | 517 $ | 197$ | 320 USD (-62%) |
Januvia | diabetes | 843,000 | $527 | 113 $ | 414 USD (-79%) |
Farxiga | Diabetes; Heart failure; Chronic kidney disease | 994,000 | 556 $ | $178.50 | $377.50 (-68%) |
Entry | Heart failure | 664,000 | 628 $ | $295 | 333 USD (-53%) |
Enbrel | Rheumatoid arthritis; Psoriasis; Psoriatic arthritis | 48,000 | $7,106 | $2,355 | 4,751 USD (-67%) |
Imbruvica | Blood cancer | 17,000 | 14,934 USD | $9,319 | 5,615 USD (-38%) |
Stelara | Psoriasis; psoriatic arthritis; Crohn’s disease; ulcerative colitis | 23,000 | 13,836 USD | 4,695 USD | 9,141 USD (-66%) |
Fiasp; Fiasp FlexTouch; Fiasp PenFill; NovoLog; NovoLog FlexPen; NovoLog PenFill |
diabetes | 785,000 | $495 | 119$ | 376 USD (-76%) |
More drugs will be selected for negotiation in the coming years. The next 15 drugs to be negotiated will be announced later this year.
At Medicare Rights, we welcome this milestone that will curb rising drug prices and help older people afford their medicines while reducing costs to taxpayers. The impact of these negotiations will grow each year as more drugs are offered at prices that better reflect their value.
Read the announcement and information sheet.
Read more about the negotiated prices.
Read more about IRA provisions.