Medicare and pharmaceutical companies agree to reduce prices for ten expensive drugs starting in 2026

Medicare and pharmaceutical companies have completed negotiations to reduce drug prices for ten of the most common and expensive Medicare drugs beginning in 2026.

Some medications help treat diabetes, blood cancer, blood clots, and more.

Eileen Bradshaw, president of Life Senior Services, says some seniors currently have to choose between prescription drug redemption and their refrigerator, and these price cuts will be life-changing.

Modern medicines help people live longer and save lives. Eileen Bradshaw believes that pharmaceutical companies should make a profit because drug prices are too high.

“People literally can't afford these life-saving drugs, that's a problem. I think there's really important work being done here to make these drugs affordable again for the people who need them most,” Bradshaw said.

Now the price of ten medicines could be reduced by up to 79%.

“These 10 drugs account for about 20% of Medicare Part D spending. They're the most commonly prescribed drugs and people spend millions of dollars every year just on the copay. So for seniors, this is a big deal,” Bradshaw said.

This is the first time lawmakers have negotiated in Washington, D.C. A ban on price negotiations was lifted under the Inflation Reduction Act.

“I guess this has been a very lengthy process, it sounds like it has been going on for quite some time, and [to] “Negotiating these drugs and committing to continue negotiations on a new round of drugs is very significant and good for the economy,” Bradshaw said.

The White House says the lower costs would save taxpayers $6 billion.

“People will see this and feel it in their wallets in 2026,” Bradshaw said.

Starting January 1, 2025, Medicare Part D out-of-pocket costs will be capped at $2,000.