Biden-Harris Administration Announces Billions in Savings from Drug Price Negotiations
In a historic first, the Biden-Harris administration today announced the results of the initial round of drug price negotiation made possible by the Inflation Reduction Act (IRA). For 2026, the first year the prices will be in effect, the administration projects that people with Medicare will save $1.5 billion in out-of-pocket costs. In total, Medicare is expected to save at least $6 billion in 2026 due to lowered prices on 10 drugs. Savings will continue to accumulate in following years.
The medications selected for negotiation have high Medicare spending and no competition, among other factors. The resulting list includes medications that 8.8 million Medicare beneficiaries relied on in 2023 to treat conditions such as cancer, diabetes, blood clots, heart failure, autoimmune conditions, and chronic kidney disease.
As required by the IRA, the administration assessed the value of the drugs and established a fairer price rather than simply allowing drug manufacturers to name their own.
As the chart below shows, list prices for the drugs will be reduced 38-79%.
| Drug Name | Commonly Treated Conditions | Number of Medicare Enrollees Who Used the Drug in 2023 | Drug List Price in 2023 for 30-day Supply | Negotiated Price for 2026 for 30-day Supply | Savings (%) |
| Eliquis | Prevention and treatment of blood clots | 3,928,000 | $521 | $231 | $290 (-56%) |
| Jardiance | Diabetes; Heart failure; Chronic kidney disease | 1,883,000 | $573 | $197 | $376 (-66%) |
| Xarelto | Prevention and treatment of blood clots; Reduction of risk for patients with coronary or peripheral artery disease | 1,324,000 | $517 | $197 | $320 (-62%) |
| Januvia | Diabetes | 843,000 | $527 | $113 | $414 (-79%) |
| Farxiga | Diabetes; Heart failure; Chronic kidney disease | 994,000 | $556 | $178.50 | $377.50 (-68%) |
| Entresto | Heart failure | 664,000 | $628 | $295 | $333 (-53%) |
| Enbrel | Rheumatoid arthritis; Psoriasis; Psoriatic arthritis | 48,000 | $7,106 | $2,355 | $4,751 (-67%) |
| Imbruvica | Blood cancers | 17,000 | $14,934 | $9,319 | $5,615 (-38%) |
| Stelara | Psoriasis; Psoriatic arthritis; Crohn’s disease; Ulcerative colitis | 23,000 | $13,836 | $4,695 | $9,141 (-66%) |
| Fiasp; Fiasp FlexTouch; Fiasp PenFill; NovoLog; NovoLog FlexPen; NovoLog PenFill | Diabetes | 785,000 | $495 | $119 | $376 (-76%) |
Additional drugs will be chosen for negotiation in the coming years. The next 15 drugs to be negotiated will be announced later this year.
At Medicare Rights, we applaud this monumental milestone in curbing rising drug prices and helping older adults afford their medications while reducing costs for taxpayers. The effect of these negotiations will build upon itself year after year as more and more drugs have prices that better reflect their value.
Read the announcement and fact sheet.
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