Medicare has a new ability created by the Inflation Reduction Act of 2022. It can now negotiate prices for the most expensive drugs the program covers. In fact, the first set of negotiated drug prices go into effect in 2026. It’s estimated to save $1.5 billion in annual out-of-pocket costs for Medicare beneficiaries. This will save the Medicare program $6 billion per year.
The medications selected for negotiation are brand-name drugs that don’t have competition. And, they’re among the costliest prescription medications for the Medicare program.
The ten drugs for 2026 are:
- Eliquis
- Jardiance
- Xarelto
- Januvia
- Farxiga
- Entresto
- Enbrel
- Imbruvica
- Stelara
- Novolog
What’s more, they all treat chronic illnesses. For instance, cancer, diabetes, blood clots, heart failure, autoimmune conditions, and chronic kidney disease.
In the year 2022, $46.4 billion was spent by Part D on just these drugs. That was 19% of all Part D spending. Beneficiaries paid $3.4 billion out of pocket for them.
The eligible Medicare beneficiaries have access to these prices. New drugs will be added to the negotiated list each year. In 2027, the next set of negotiated prices for 15 additional drugs, including blockbuster diabetes drugs like Ozempic, will go into effect.
A Member-Owned Company Serving Independent Pharmacies
PBA Health is dedicated to helping independent pharmacies reach their full potential on the buy-side of their business. Founded and run by pharmacists, PBA Health serves independent pharmacies with group purchasing services, wholesaler contract negotiations, proprietary purchasing tools, and more.
An HDA member, PBA Health operates its own NABP-accredited warehouse with more than 6,000 SKUs, including brands, generics, narcotics CII-CV, cold-storage products, and over-the-counter (OTC) products — offering the lowest prices in the secondary market.
