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# Medicare Drug Costs Could Drop Sharply in 2026
- URL: https://www.smartseniordaily.com/medicare-drug-costs-could-drop-sharply-in-2026/
- Published: 2025-12-19T16:46:04.000Z
- Updated: 2025-12-23T02:56:22.000Z
- Description: Eliquis, Januvia, and Jardiance included in the savings plan
- Author: Gary P Guthrie
- Tags: Drugs, Money, Health

**What’s happening:**  
Some Medicare enrollees may pay **about 50% less out of pocket** for certain prescription drugs starting in 2026, according to a report from [**Reuters**](https://www.reuters.com/business/healthcare-pharmaceuticals/medicare-enrollees-pay-50-less-some-drugs-2025-report-says-2025-12-18/?ref=smartseniordaily.com).

**Why it matters:**  
This is the first real-world impact of Medicare negotiating drug prices under the **Inflation Reduction Act of 2022** — a change seniors have been promised for years.

[The 9 Drug Shortages Most Likely to Affect Seniors in 2026A simple, straight-to-the-point guide based on the FDA shortage list![](https://storage.ghost.io/c/d9/1a/d91a71e8-ed81-4ec8-8028-ec14ba129b35/content/images/icon/SSD-FavIcon1-36.png)Smart Senior DailySmart Senior Daily Staff![](https://storage.ghost.io/c/d9/1a/d91a71e8-ed81-4ec8-8028-ec14ba129b35/content/images/thumbnail/Drug-Shortage--2.png)](https://www.smartseniordaily.com/the-9-drug-shortages-most-likely-to-affect-seniors-in-2026/)

## What the report found

Reuters reports that an **AARP analysis** of Medicare Part D plans in five large states — **California, Florida, Texas, New York, and Pennsylvania** — shows major savings for 10 widely used drugs once negotiated prices take effect in January.

- Out-of-pocket costs for those drugs are projected to drop **nearly 50% in 2026 compared with 2025**
- **Seven of the 10 drugs** are expected to cost **under $100 per month** by 2026
- Only **two drugs** were that affordable in 2025

The negotiated drugs include:

- **Eliquis**, a blood thinner from Pfizer and Bristol Myers Squibb
- **Januvia**, a diabetes drug from Merck
- **Jardiance** and several insulin products

Savings largely come from **lower coinsurance**, since patients pay a percentage of a now-lower negotiated price. Some co-pays have also fallen, especially for insulin.

[BREAKING NEWS: Big Price Cuts Coming on Big DrugsTrump says drug prices are “coming down.” Here’s what’s what.![](https://storage.ghost.io/c/d9/1a/d91a71e8-ed81-4ec8-8028-ec14ba129b35/content/images/icon/SSD-FavIcon1-37.png)Smart Senior DailySmart Senior Daily Staff![](https://storage.ghost.io/c/d9/1a/d91a71e8-ed81-4ec8-8028-ec14ba129b35/content/images/thumbnail/Drug-Prices.png)](https://www.smartseniordaily.com/breaking-news-big-medicare-drugs-have-big-price-cuts-coming/)

## The catch

Not all drugs become affordable overnight.

Reuters notes that patients taking the most expensive medications — including **Enbrel**, **Imbruvica**, and **Stelara** — could still face monthly out-of-pocket costs ranging from **about $600 to $2,800**, depending on their plan.

AARP also cautioned that savings vary widely between plans, and results from these five states may not fully reflect what all Medicare enrollees will see.

## One more important change

The Inflation Reduction Act also adds a **hard cap on Medicare prescription drug spending**:

- **$2,100 per year starting in 2026**

The Centers for Medicare & Medicaid Services estimates the negotiated prices could save Medicare enrollees **$1.5 billion collectively** in out-of-pocket costs that year, according to Reuters.

**Bottom line:**  
Real savings are coming for many seniors — but how much you personally save will still depend on **which drugs you take and which Medicare plan you choose**.