The 10 Drugs Medicare Is Discounting: What You Need to Know for 2026

If you’re a Medicare beneficiary, you know that prescription drug costs can be a major concern. You may have heard news about upcoming price changes, and you’re in the right place to get clear answers. This guide breaks down the 10 specific drugs selected for Medicare price negotiation and explains what these changes mean for you.

A Landmark Change in Drug Pricing

For the first time, Medicare has the power to negotiate directly with drug manufacturers to lower prices for certain high-cost prescription medications. This new authority comes from the Inflation Reduction Act, a law designed to reduce healthcare costs for millions of Americans.

The goal is to make essential medications more affordable for seniors and people with disabilities covered by Medicare. The process has already begun, and the first set of lower, negotiated prices will take effect on January 1, 2026. The list of drugs will expand in the coming years, but the initial focus is on 10 widely used medications that account for billions of dollars in Medicare spending.

The First 10 Drugs Selected for Price Negotiation

The U.S. Department of Health and Human Services, through the Centers for Medicare & Medicaid Services (CMS), identified the first 10 drugs covered under Medicare Part D selected for negotiation. If you take one of these medications, you may see lower out-of-pocket costs in 2026.

Here is the official list, along with what each drug is commonly used for:

1. Eliquis (Apixaban)

  • Manufacturer: Bristol Myers Squibb / Pfizer
  • Commonly Used For: Preventing blood clots to reduce the risk of stroke in people with atrial fibrillation (A-fib). It is also used to treat and prevent deep vein thrombosis (DVT) and pulmonary embolism (PE).

2. Jardiance (Empagliflozin)

  • Manufacturer: Boehringer Ingelheim / Eli Lilly
  • Commonly Used For: Treating type 2 diabetes by helping the kidneys remove glucose from the bloodstream. It is also used to reduce the risk of cardiovascular death in adults with type 2 diabetes and heart disease, and to treat certain types of heart failure.

3. Xarelto (Rivaroxaban)

  • Manufacturer: Janssen Pharmaceuticals (Johnson & Johnson)
  • Commonly Used For: Similar to Eliquis, Xarelto is an anticoagulant used to prevent and treat blood clots. It helps lower the risk of stroke in patients with atrial fibrillation and is also used after hip or knee replacement surgery to prevent DVT.

4. Januvia (Sitagliptin)

  • Manufacturer: Merck
  • Commonly Used For: Managing blood sugar levels in adults with type 2 diabetes. It works by increasing the levels of natural substances that help control blood sugar, particularly after a meal.

5. Farxiga (Dapagliflozin)

  • Manufacturer: AstraZeneca
  • Commonly Used For: Treating type 2 diabetes, certain types of heart failure, and chronic kidney disease. Like Jardiance, it helps control blood sugar and provides cardiovascular and kidney protection.

6. Entresto (Sacubitril/Valsartan)

  • Manufacturer: Novartis
  • Commonly Used For: Treating certain types of heart failure. It is a combination medication that helps relax blood vessels and reduce stress on the heart, improving its ability to pump blood.

7. Enbrel (Etanercept)

  • Manufacturer: Amgen
  • Commonly Used For: Treating several autoimmune conditions, including rheumatoid arthritis, psoriatic arthritis, and plaque psoriasis. It works by blocking a substance in the body that can cause inflammation.

8. Imbruvica (Ibrutinib)

  • Manufacturer: AbbVie / Pharmacyclics
  • Commonly Used For: Treating certain types of cancer, including mantle cell lymphoma and chronic lymphocytic leukemia (CLL). It is a targeted therapy that works by blocking a protein that helps cancer cells live and grow.

9. Stelara (Ustekinumab)

  • Manufacturer: Janssen Pharmaceuticals (Johnson & Johnson)
  • Commonly Used For: Treating autoimmune disorders such as plaque psoriasis, psoriatic arthritis, Crohn’s disease, and ulcerative colitis. It targets specific proteins involved in the inflammatory process.

10. Fiasp; Fiasp FlexTouch; Fiasp PenFill; Novolog; Novolog FlexPen; Novolog PenFill (Insulin Aspart)

  • Manufacturer: Novo Nordisk
  • Commonly Used For: These are rapid-acting insulin products used to control high blood sugar in people with type 1 and type 2 diabetes. They are typically taken at mealtimes.

Understanding the Timeline and Potential Savings

It’s important to understand how this process will unfold. The ad mentions savings for 2026, and that is the key date when these changes will directly impact your wallet.

  • 2023-2024: The Negotiation Period: Medicare and the drug manufacturers are currently in a negotiation period to agree on a new “maximum fair price” for each of the 10 drugs listed.
  • September 1, 2024: Prices Announced: The new, lower prices will be made public by this date. This is when we will know the exact savings for each medication.
  • January 1, 2026: New Prices Take Effect: The negotiated prices will officially go into effect. Medicare beneficiaries who take these drugs and are enrolled in a Part D plan will begin to see the benefits through lower out-of-pocket costs.

While the exact savings are not yet known, the potential is significant. These 10 drugs accounted for over $50 billion in total Medicare Part D costs between June 2022 and May 2023. By negotiating prices, the government aims to substantially reduce this figure, with savings passed on to both taxpayers and beneficiaries.

What Happens Next?

This list of 10 drugs is just the beginning. The Inflation Reduction Act outlines a plan to continue adding more drugs to the negotiation list in the coming years:

  • For 2027: Up to 15 more Part D drugs will be selected for negotiation.
  • For 2028: Up to 15 more drugs from both Part D and Part B will be selected.
  • For 2029 and beyond: Up to 20 more drugs from both Part D and Part B will be selected each year.

This ongoing process aims to address the high cost of prescription medications across the board, providing long-term relief for Medicare beneficiaries.

Frequently Asked Questions

How were these 10 drugs chosen? CMS selected these drugs based on several criteria. They had to be single-source drugs (without generic or biosimilar competition), have been on the market for several years, and be among the drugs with the highest total spending for Medicare Part D.

What if my medication isn’t on this list? This initial list is the first step. More drugs will be added for negotiation in future years. Additionally, other provisions of the Inflation Reduction Act, such as the $35 monthly cap on insulin and the future $2,000 annual cap on out-of-pocket drug costs (starting in 2025), may still help you save money.

Will my co-pay for these drugs automatically go down? The new, lower negotiated price will serve as the basis for what your Part D plan pays. This should lead to lower co-pays or coinsurance for you. The exact amount will depend on your specific Part D plan’s formulary and benefit structure.

Do I need to do anything to get these lower prices? No, you do not need to take any action. If you are prescribed one of these drugs, the new prices will be automatically applied starting in 2026. The best thing to do is stay informed and review your Medicare Part D plan options during the annual Open Enrollment period to ensure you have the best coverage for your needs.