Negotiated prices for 10 Medicare Part D drugs will go into effect Jan. 1, 2026, which could lead to $1.5 billion in out-of-pocket savings, according to a December AARP Public Policy Institute report.
The negotiations stem from the Inflation Reduction Act passed in 2022. AARP leveraged data from the Medicare Plan Finder website to assess cost-sharing and other coverage elements in stand-alone Part D plans across five states with high Medicare enrollment.
Here are five things to know:
1. Enrollee costs for the negotiated drugs will drop 51% in 2026.
2. Seven of the 10 negotiated drugs will have average cost-sharing of less than $100 each month. This is a boost from only two meeting this threshold in 2025.
3. Out of the 10 drugs, Enbrel — a rheumatoid arthritis and psoriasis drug — will have the biggest decrease in average monthly enrollee costs next year, down 73% from 2025.
4. A new Medicare Part D cap for out-of-pocket spending will limit yearly costs to $2,100, helping mitigate the challenges that come with affording costly drugs.
5. Stand-alone plans’ utilization management for these drugs will not change much between 2025 and 2026.
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