AARP reveals crucial new Medicare change

After years of groundwork, the first group of 10 Medicare Part D drugs chosen for price negotiations will become available to beneficiaries at lower costs starting in 2026. And a significant expansion of that list is coming in 2027, according to AARP, the nonprofit group that advocates for people ...

Nov 29, 2025 - 13:00

AARP reveals crucial new Medicare change

After years of groundwork, the first group of 10 Medicare Part D drugs chosen for price negotiations will become available to beneficiaries at lower costs starting in 2026.

And a significant expansion of that list is coming in 2027, according to AARP, the nonprofit group that advocates for people above 50 years of age.

The prescription drug legislation in the Inflation Reduction Act of 2022 — backed by AARP — directed the Department of Health and Human Services to work with pharmaceutical companies to secure reduced prices on 10 widely used, brand-name medications that are expensive and lack generic or biosimilar alternatives.

This initiative will expand access to dozens of breakthrough treatments, making them more affordable while enhancing health outcomes and quality of life for millions of people on Medicare.

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Beginning Jan. 1, 2026, the program is projected to cut enrollees’ out-of-pocket expenses by roughly $1.5 billion next year, according to the Centers for Medicare & Medicaid Services (CMS).

“For too long, big drug companies have padded their profits by setting outrageous prices at the expense of American lives, forcing seniors to skip prescriptions they can’t afford,” said Nancy LeaMond, AARP executive vice president and chief advocacy and engagement officer.

“The first round of Medicare drug price negotiation made it clear that this process will reduce the prices of these important products and create billions of dollars in savings for Medicare and its beneficiaries.”

AARP lists the 10 initial Medicare medications

The 10 popular medications making up the first iteration of price-reduced drugs negotiated for Medicare, available on Jan. 1, 2026 are:

Eliquis for blood clot prevention and treatment.
Enbrel for rheumatoid arthritis, psoriasis and psoriatic arthritis.
Entresto for heart failure.
Farxiga for diabetes, heart failure and chronic kidney disease.
Fiasp and NovoLog, types of insulin for diabetes.
Imbruvica for blood cancers.
Januvia for diabetes.
Jardiance for diabetes, heart failure and chronic kidney disease.
Stelara for psoriasis, psoriatic arthritis, Crohn’s disease and ulcerative colitis.
Xarelto for blood clot prevention and treatment.

Price-negotiated drugs for Medicare in 2027

The federal government announced Nov. 26 that 15 more high-cost, widely prescribed medications will have reduced, negotiated prices for Medicare beneficiaries beginning in 2027.

Roughly 5.3 million people rely on these drugs — representing $40.7 billion in Medicare Part D spending — to manage conditions such as asthma, cancer, chronic obstructive pulmonary disease (COPD), and diabetes, according to AARP.

“Older Americans across the political spectrum consistently say lower drug prices are a top priority, and these negotiated prices will bring meaningful relief to millions of people on Medicare,” said Dr. Myechia Minter-Jordan, AARP’s CEO.

“We thank the administration for ensuring Medicare's ability to negotiate lower drug prices is protected so older Americans benefit for decades to come," she added.

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The Centers for Medicare & Medicaid Services (CMS) reached agreements during 2025 with pharmaceutical companies to lower the prices, a move projected to save between $8.5 billion and $12 billion annually.

Starting Jan. 1, 2027, the discounted rates must be offered to eligible Medicare enrollees and included in all stand-alone Part D plans as well as Medicare Advantage prescription drug plans.

Beneficiaries enrolled in Part D coverage are expected to see about $685 million in reduced out-of-pocket costs.

AARP says the Medicare drug cost fight is not over

“AARP applauds CMS for standing firm and using Medicare’s buying power to lower drug prices for older Americans. These negotiations are saving billions and helping millions afford the medications they need to stay healthy,” LeaMond said.

“The fight isn’t over. Drug companies are spending millions to weaken this law,” she says. “As the voice for 125 million Americans age 50 and over, AARP will keep pushing to ensure full implementation and lasting relief. Lower drug prices mean healthier lives and stronger budgets, and we’re committed to making that permanent.”