Biden: Medicare has negotiated discounts on 10 prescription drugs
President Joe Biden announced that Medicare had negotiated rebates for ten drugs prescribed to treat blood clots, cancer, heart disease and diabetes.
The Biden administration announced Thursday that prices for some prescription drugs would fall after negotiating discounts.
Ten drugs used by millions of Americans, such as Xarelto, Eliquis and Jardiance, will be discounted by 38 to 79 percent, saving people hundreds or thousands of dollars when purchasing a 30-day supply. The Centers for Medicare & Medicaid Services (CMS) estimates that 8.8 million of the 54 million Americans with Medicare Part D used these drugs last year.
The discount pricing targets high-priced, one-stop drugs that have no generics or competitors. This cost reduction is thanks to Biden’s Inflation Reduction Act of 2022. The administration says people covered by Medicare for prescription drugs could save an estimated $1.5 billion, and taxpayers are expected to save $6 billion.
Here you can find out which medications are reduced in price and how you can get discounts.
When do new prices for prescription drugs come into effect?
Prices for the ten prescription drugs will be reduced starting January 1, 2026. The prices shown may not reflect the actual price paid, as discounts, co-payments and deductibles can affect the final price.
Over the next two years, starting in 2027 and 2028, another 30 drugs will be selected at negotiated prices.
How do I get discounted prices for new drugs from Medicare?
Medicare Part D members will be eligible for lower rates in 2026. Medicare Part D helps people cover prescription drug costs. According to Medicare, there are two ways to get Medicare drug insurance. Only people age 65 and older or those with a disability are allowed to enroll in Medicare.
- Medicare drug plans. These plans supplement the drug coverage of Original Medicare, some Medicare Cost Plans, some Private Fee-for-Service Plans, and Medical Savings Account plans. You must have Medicare Part A (medical insurance) and/or Medicare Part B (health insurance) to join a separate Medicare drug plan.
- Medicare Advantage Plan (Part C) or another Medicare health plan with drug coverage. You will receive all of your Part A, Part B, and drug coverage through these plans. Remember, you must have Part A and Part B to join a Medicare Advantage plan, and not all of these plans offer drug coverage.
What impact will new prescription drug prices have on Tennessee?
Accordingly Health policy research location KFFMore than 1.1 million Tennessee residents are enrolled in Medicare Part D. Nearly 430,000 residents are enrolled in a stand-alone drug plan and more than 687,000 residents are enrolled in the Medicare Advantage drug plan.
Which prescription drugs will have their price reduced?
These are the ten prescription drugs that will have their prices cut and what the new prices will be.
Januvia
Januviafrom Merck Sharp Dohme helps diabetics lower their blood sugar. The list price for a 30-day supply was $527 in 2023. In 2026, the list price will be $113, a savings of 79%.
Fiasp, NovoLog
Fiasp, Fiasp FlexTouch, Fiasp PenFill, NovoLog, NovoLog FlexPen and NovoLog PenFill by Novo Nordisk Inc. are all insulin or insulin injectors for patients with diabetes. Last year they had a list price of $495 for 30 days, the new price of $119 is 76% cheaper.
Farxiga
Farxiga from AstraZeneca AB is used to reduce the risk of diabetes, heart failure and chronic kidney disease. The list price for a 30-day supply was $556 in 2023, the new list price will be $178.50, a decrease of 68%.
Enbrel
The Immunex Corporation Enbrel treats rheumatoid arthritis, psoriasis, and psoriatic arthritis. In 2023, the list price for a 30-day supply was a whopping $7,106. The 2026 price has dropped 67% to $2,355.
Jardiance
Jardiance by Boehringer Ingelheim is used to reduce the risk of heart failure and chronic kidney disease and to lower blood sugar. The list price last year was $573, the 2026 list price will fall 66% to $197.
Stelara
Stelara by Janssen Biotech, Inc. is used to treat psoriasis, psoriatic arthritis, Crohn’s disease, and ulcerative colitis. The 2026 list price will decrease by 66% from $13,836 for a 30-day supply to $4,695.
Xarelto
Janssen Pharma’ Xarelto is prescribed to reduce the risk of strokes and blood clots, to treat existing blood clots, and to reduce the risk for patients with coronary or peripheral artery disease. In 2023, the list price was $517, in 2026 the price will decrease by 62% to $197.
Eliquis
Eliquis from Bristol Myers Squibb is also used to prevent and treat blood clots. Last year, it was prescribed to nearly 4 million Medicare Plan D patients. The list price for a 30-day supply was $521, but negotiations reduced that price by 56% to $231 in 2026.
Entry
Entry from Novartis Pharms Corp is used to treat patients with chronic heart failure to reduce the risk of death and hospitalization. Last year, the 30-day list price was $628, but in two years it will fall 53% to $295.
Imbruvica
Imbruvica by Pharmacyclics LLC is prescribed to treat blood cancers such as chronic lymphocytic leukemia, Waldenström macroglobulinemia, and chronic graft-versus-host disease. The most expensive drug on the list, whose list price is $14,934 in 2023, will drop 38% to $9,319 in 2026.
