2. Negotiated Prescription Drug Prices Take Effect
One of the most significant developments for 2026 is the implementation of Medicare’s first-ever negotiated prescription drug prices. The Inflation Reduction Act of 2022 gave Medicare the authority to negotiate prices on expensive medications, and the first round of these negotiated prices became effective January 1, 2026.
Ten high-cost prescription drugs now have lower negotiated prices, including medications for arthritis, blood clots, cancer, and diabetes. These medications are commonly used by Medicare beneficiaries and previously carried substantial out-of-pocket costs.
The negotiated prices are expected to lower recipients’ out-of-pocket spending by approximately $1.5 billion in 2026 alone, with continued savings in subsequent years.
All eligible Medicare beneficiaries enrolled in Medicare Part D prescription drug plans or Medicare Advantage plans with prescription coverage can access these negotiated prices. Each of the ten medications must be covered in all Part D and Medicare Advantage prescription drug plans that Original Medicare beneficiaries use.
The Centers for Medicare and Medicaid Services estimates that if these lower prices had been in effect in 2023, Medicare itself would have saved approximately $6 billion. Looking ahead, a list of 15 additional high-cost drugs selected for negotiation was announced by February 1, 2026, with those price reductions scheduled to take effect on January 1, 2027.
This progressive expansion of drug price negotiations represents a fundamental shift in how Medicare manages pharmaceutical costs.
Furthermore, Medicare will begin covering popular GLP-1 weight-loss medications in July 2026. Medicare Part D enrollees who qualify will have access to medications like Mounjaro, Ozempic, Wegovy, and Zepbound at approximately $50 per month, following agreements between the government and manufacturers Eli Lilly and Novo Nordisk.
