The Official List: 10 Drugs Medicare Will Negotiate for Lower Prices

If you’ve heard the news about Medicare negotiating drug prices, you’re likely wondering what it means for your wallet. For the first time, Medicare has the power to negotiate lower costs for some of the most common and expensive prescription drugs. We have the complete list of the first 10 medications selected and will explain exactly what this means for you.

The First 10 Drugs Selected for Price Negotiation

The primary reason you’re here is to see the list. As part of the Inflation Reduction Act, the Centers for Medicare & Medicaid Services (CMS) announced the first 10 drugs covered under Medicare Part D selected for price negotiation. These medications were chosen based on their high total cost to the Medicare program. The negotiated prices for these drugs are scheduled to take effect in 2026.

Here are the medications on the initial list and what they are commonly used to treat:

  • Eliquis (Apixaban): Used to prevent blood clots and reduce the risk of stroke in people with atrial fibrillation.
  • Jardiance (Empagliflozin): Used to treat type 2 diabetes and reduce the risk of cardiovascular death in adults with both type 2 diabetes and heart disease.
  • Xarelto (Rivaroxaban): Another common anticoagulant used to prevent and treat blood clots.
  • Januvia (Sitagliptin): A medication used to control high blood sugar in people with type 2 diabetes.
  • Farxiga (Dapagliflozin): Prescribed for type 2 diabetes, heart failure, and chronic kidney disease.
  • Entresto (Sacubitril/Valsartan): A combination medication used to treat certain types of heart failure.
  • Enbrel (Etanercept): A biologic drug used to treat rheumatoid arthritis, psoriatic arthritis, and other autoimmune conditions.
  • Imbruvica (Ibrutinib): A targeted therapy medication used to treat certain types of blood cancers, including mantle cell lymphoma and chronic lymphocytic leukemia.
  • Stelara (Ustekinumab): Used to treat psoriasis, psoriatic arthritis, Crohn’s disease, and ulcerative colitis.
  • Fiasp; Novolog (Insulin Aspart): A rapid-acting insulin used to manage blood sugar levels in people with type 1 and type 2 diabetes.

How Did This Happen? The Power of the Inflation Reduction Act

For many years, the federal government was legally prohibited from negotiating prescription drug prices directly with manufacturers for the Medicare program. This changed with the passage of the Inflation Reduction Act of 2022. This landmark law granted Medicare the authority to negotiate prices for a selection of high-expenditure, single-source brand-name drugs.

The goal is twofold:

  1. Lower out-of-pocket costs for millions of seniors and others on Medicare who rely on these expensive medications.
  2. Save taxpayer money by reducing the overall spending within the Medicare program, which is projected to save billions of dollars over the next decade.

This negotiation process is a significant shift in how drug prices are set for the Medicare population, aiming to make essential medications more affordable.

Understanding the Timeline: When Will You See Savings?

The ad mentions that price cuts are coming “soon,” and it’s important to understand the official timeline. While the process has started, the lower prices won’t appear at the pharmacy counter overnight.

  • August 2023: CMS announced the first 10 drugs for negotiation.
  • October 2023: Drug manufacturers signed agreements to participate in the negotiation process.
  • February 2024: CMS and manufacturers exchanged initial offers on pricing.
  • August 2024: The negotiation period is scheduled to conclude.
  • September 2024: CMS will publish the final negotiated “maximum fair prices” for these 10 drugs.
  • January 1, 2026: The new, lower negotiated prices for this first group of drugs will officially take effect.

So, while the wheels are in motion now, the actual cost savings for patients on these specific drugs will begin in 2026.

The List Is Set to Expand

The initial list of 10 drugs is just the beginning. The Inflation Reduction Act has laid out a plan to add more drugs to the negotiation list in the coming years, expanding the potential for savings.

Here is the schedule for future additions:

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

This phased approach means that even if your medication isn’t on the first list, it could be selected for negotiation in a future year. The program is designed to grow over time, eventually covering a wider range of the most expensive drugs that impact Medicare beneficiaries.

Frequently Asked Questions

What should I do if my medication is on this list? For now, you don’t need to do anything. Continue taking your medication as prescribed by your doctor. The price changes will be implemented automatically in 2026, and you should see lower out-of-pocket costs at that time, depending on your specific Part D plan.

What if my medication is not on the list? If your drug wasn’t selected this time, it might be included in a future round of negotiations in 2027 or beyond. In the meantime, you can explore other ways to save on prescriptions, such as talking to your doctor about lower-cost alternatives or using the Medicare Plan Finder tool during Open Enrollment to see if another Part D plan offers better coverage for your specific medications.

How were these specific drugs chosen? CMS selected these drugs based on a clear set of criteria. They had to be brand-name drugs or biologics without generic or biosimilar competition. They also had to be among the highest-spending drugs in Medicare Part D and have been on the market for at least nine years (for small-molecule drugs) or 13 years (for biologics).