HHS Announces Price Cuts for 10 Medicare Drugs

The U.S. Department of Health and Human Services (HHS) has negotiated lower prices for 10 of the most expensive and widely used drugs covered under Medicare, which is expected to save the Medicare program $6 billion in the first year and reduce out-of-pocket costs for beneficiaries by $1.5 billion.

The 10 drugs selected for price reductions in 2026, along with their Medicare costs and the percentage discount from the 2023 list price, are as follows:

1) Eliquis: A blood thinner used to reduce the risk of stroke, costing Medicare $16.5 billion, to be 56 percent cheaper

2) Jardiance: A diabetes and heart failure medication, costing $7 billion, to be 66 percent cheaper

3) Xarelto: Another blood thinner, costing $6 billion, to be 62 percent cheaper

4) Januvia: A diabetes drug, costing $4.1 billion, to be 79 percent cheaper

5) Farxiga: Used for diabetes, heart failure and chronic kidney disease, costing $3.3 billion, to be 68 percent cheaper

6) Entresto: A heart failure drug, costing $2.9 billion, to be 53 percent cheaper

7) Enbrel: An autoimmune condition treatment, costing $2.8 billion, to be 67 percent cheaper

8) Imbruvica: A leukemia treatment, costing $2.7 billion, to be 38 percent cheaper

9) Stelara: An autoimmune disease treatment, costing $2.6 billion, to be 66 percent cheaper

10) NovoLog, Fiasp (insulin aspart): Insulin products, costing $2.6 billion, to be 76 percent cheaper

The selected drugs accounted for $56.2 billion in Medicare spending in 2023 alone. Nearly nine million Medicare Part D beneficiaries were dispensed these drugs, making them the primary beneficiaries of the price reductions. Before the drug prices were finalized, the Congressional Budget Office estimated drug price negotiations could save the federal government $25 billion by 2031.

The Centers for Medicare and Medicaid Services (CMS) has announced plans to select another batch of drugs for price negotiations next year, with the goal of negotiating prices for up to 15 selected drugs. This process will continue in subsequent years, with CMS selecting up to 20 drugs each year for negotiation.     ❖