Medicare drug price negotiation: what it means for you
Lower prices Medicare pays. Your savings depend on your plan.
Under the Inflation Reduction Act, Medicare now negotiates the prices it pays for some high-cost drugs. The first negotiated prices took effect on January 1, 2026.
Which drugs
The first 10 drugs, with negotiated prices from 2026, include widely used medications for diabetes, heart failure, blood clots and some cancers and autoimmune conditions: Januvia, Fiasp and NovoLog, Farxiga, Enbrel, Jardiance, Stelara, Xarelto, Eliquis, Entresto and Imbruvica.
Fifteen more drugs have negotiated prices starting January 1, 2027, including Ozempic, Rybelsus and Wegovy, Trelegy Ellipta, Xtandi, Ibrance, Linzess and others. A third round, including the first drugs covered under Part B, takes effect in 2028.
What it changes for you
The negotiated price is what Medicare's plans pay for the drug, not your copay. How much you save depends on your plan's cost sharing. If you pay coinsurance (a percentage), a lower price usually means a lower cost to you. If you pay a flat copay, your cost may not change. Either way, the yearly out-of-pocket cap still applies.
Checking your costs
Enter your drugs in the Medicare Plan Finder to see what each plan charges you. Formularies must include the negotiated drugs.
Common questions
Possibly. It depends on whether your plan charges coinsurance or a flat copay. Check your plan's cost for the drug.
No. The negotiated prices apply to Medicare.
Want help with your own choices?
Every state runs a State Health Insurance Assistance Program (SHIP) with trained counselors who give free, unbiased Medicare help and do not sell plans. Find yours on our Medicare by state pages, or call Medicare at 1-800-MEDICARE (1-800-633-4227) (TTY 1-877-486-2048, 24 hours a day, 7 days a week).
Planning the rest of your coverage in retirement? We can help with life insurance later in life and final expense coverage.
Sources
- Negotiated prices for initial price applicability year 2026 (fact sheet), Centers for Medicare & Medicaid Services. Checked September 29, 2026.
- Negotiated prices for initial price applicability year 2027 (fact sheet), Centers for Medicare & Medicaid Services. Checked September 29, 2026.
- CMS announces selection of drugs for third cycle of negotiation, Centers for Medicare & Medicaid Services. Checked September 29, 2026.
General information about the federal Medicare program, not advice about your situation. Figures are for 2026 unless stated and change every year; last reviewed September 29, 2026. Quote My Policy is a private company. Not connected with or endorsed by the United States government or the federal Medicare program.
Quote My Policy does not sell Medicare plans on this site. For plan-specific help, contact Medicare at 1-800-MEDICARE (1-800-633-4227) (TTY 1-877-486-2048, 24 hours a day, 7 days a week) or your State Health Insurance Assistance Program.