Medicare to Start Negotiating Prices for 10 Drugs

By Mike Martin · Your Medicare & Health Insurance Agent · Updated March 2026

What This Means for You

For the first time, Medicare has the authority to directly negotiate with pharmaceutical companies on the prices of some of the most commonly used and expensive medications. Previously, Medicare was required by law to accept whatever price drug manufacturers set.

Which Drugs Are Affected?

The initial round of negotiations targets 10 drugs that account for significant spending under Medicare Part D. These include medications used to treat diabetes, heart disease, blood clots, and other chronic conditions that affect millions of seniors.

The Bigger Picture

Under the Inflation Reduction Act, Medicare will negotiate prices on additional drugs in future years, gradually expanding the program's reach. The law also caps out-of-pocket prescription drug costs for Medicare beneficiaries and penalizes drug companies that raise prices faster than inflation.