On August 15, the Centers for Medicare & Medicaid Services (CMS) announced the negotiated 2026 Medicare drug prices for 10 common and expensive drugs used by beneficiaries. As a result of the negotiations, many individuals will see significant out-of-pocket savings!
In 2023, CMS selected the first 10 drugs Medicare would negotiate the price of with manufacturers. According to the Medicare drug price negotiation timeline, conversations ended August 1, 2024.
CMS-Negotiated Prescription Drugs for 2026
The table below features the negotiated Medicare drug maximum fair prices for the first 10 drugs, all of which are among those with the highest total spending in Medicare Part D. When the prices take effect in 2026, beneficiaries will see hundreds to thousands of dollars in savings on 30-day supplies, totaling a collective estimated savings of $1.5 billion in out-of-pocket costs for the year! Price reductions for the 10 drugs in the Medicare Drug Price Negotiation Program span from 38 percent to 79 percent.
2026 Maximum Fair Prices for Medicare-Negotiated Drugs
Sources: Whitehouse.gov and CMS.gov
As long as a drug remains in the Medicare Drug Price Negotiation Program, a discount will apply. Each year the drug remains in the program following their initial year, CMS will adjust the price by the annual percentage increase in the Consumer Price Index for all urban consumers. The price may also include any other updates based on renegotiations between CMS and the drug manufacturer.
Must All Manufacturers Participate in the Medicare Drug Price Negotiation Program?
No, manufacturers were not required to participate in the CMS drug price negotiation program. Drug manufacturer participation in the program was voluntary.
Participating drug companies are required to ensure the negotiated prices of the selected drugs are made available to beneficiaries and all entities (e.g., pharmacies, mail-order services) that dispense the drug to such individuals.
The Future of Medicare Drug Price Negotiations
The Inflation Reduction Act of 2022 gave CMS the power to negotiate pricing on some of the highest spending drugs to make prescriptions more affordable for Medicare beneficiaries. The lower prices of the first 10 drugs is just the start.
CMS published their draft guidance on 2027 Medicare drug price negotiations this past May.
In 2025, Medicare will negotiate the prices of up to 15 more Part D drugs for 2027. In 2026, they’ll negotiate the prices of up to an additional 15 Part B or D drugs for 2028. They’ll negotiate up to an additional 20 Part B or D drugs each year thereafter.
These additional negotiations are expected to lead to even more savings for Part D beneficiaries!
Now that the maximum fair prices for the first 10 drugs in the Medicare Drug Price Negotiation Program have been released, it’s evident that Part D beneficiaries can expect major out-of-pocket savings in future years.
Stay tuned for even more updates on drug prices! Register with Ritter to get the latest news today.
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