Medicare Drug Deals Are Saving Some Seniors Real Money

For the first time in the history of the Medicare program, the federal government negotiated the prices of prescription drugs directly with pharmaceutical manufacturers. Those negotiated prices took effect on January 1, 2026 - and for the roughly nine million Medicare Part D enrollees who use the first ten affected medications, the change at the pharmacy counter has been measurable.

What Changed and How Much

AARP research found that Medicare Part D enrollees are seeing average out-of-pocket cost reductions of approximately 51 percent for the ten negotiated drugs. In five high-enrollment states - Florida, Pennsylvania, California, New York, and Texas - average reductions ranged from 48 to 54 percent. For seven of the ten drugs, monthly out-of-pocket costs are now below $100, according to AARP analysis of 56 standalone prescription drug plans.

The Centers for Medicare and Medicaid Services estimates the program will generate approximately $6 billion in annual savings across the Medicare program as a whole. CBS News confirmed the drugs include blood thinners, diabetes medications, and treatments for inflammatory conditions - categories that affect millions of older adults managing chronic illness.

The Drugs Involved

The ten medications selected for the first negotiation cycle include some of the most widely prescribed drugs in the Medicare system. Eliquis, a blood thinner, and Jardiance, a diabetes treatment, saw among the largest price reductions. A second cycle covering 15 additional drugs - including Ozempic and Wegovy for diabetes and weight management - reached agreement in 2025, with those discounted prices set to take effect in 2027, according to NBC News reporting.

CMS also announced in March 2026 that a third cycle of negotiations, covering another 15 drugs and including the first-ever Medicare Part B drugs, would take place this year, with prices effective in 2028.

The Broader Pricing Picture

The savings do not extend beyond Medicare Part D enrollees. For Americans without Medicare coverage, the negotiated prices do not apply. And even as those discounts took effect, CBS News documented that drugmakers raised list prices on more than 350 medications in the opening weeks of 2026 - including Pfizer, which increased prices on roughly 80 drugs by a median of around 5 percent. A recent KFF survey found that approximately 60 percent of American adults report worry about affording prescription drugs for themselves or their families.

The One Big Beautiful Bill Act, signed into law in 2025, included a provision exempting drugs for rare diseases from future negotiation rounds, partially limiting the program’s long-term scope.

What This Means for Medicare Households

For the specific households affected, the savings are practical and concrete. A patient previously paying several hundred dollars per month for Eliquis may now pay significantly less, freeing up a portion of a fixed monthly income that was previously absorbed by that single prescription.

As CBS News noted, this is the first time the United States has negotiated drug prices at a national level, as every other developed country has done for decades. The question that remains is how broadly those savings will extend as the program matures, and whether future legislative and legal developments will expand or constrain its reach.

References: Drug Prices Trumprx | Medicare Drug Price Negotiations Savings 2026