On Thursday, the Biden administration disclosed an agreement made between Medicare and drug manufacturers aimed at lowering costs for 10 prescription medications, which is expected to save about $6 billion compared to Medicare’s 2023 expenditures for the same drugs. According to the Centers for Medicare & Medicaid Services (CMS), roughly 8.8 million of the 54 million Americans enrolled in Medicare Part D were using these medications in 2023.

The price reductions for these medications vary, with the blood cancer treatment Imbruvica dropping by 38%, while Januvia, a diabetes medication, will see a whopping 79% decrease. These discussions were part of the Inflation Reduction Act of 2022, enacted by President Joe Biden in August 2022.

The new pricing will come into effect on January 1, 2026.

Which prescription drugs will see price reductions?

The medications that will be seeing cost reductions are used to treat various conditions, including cancer, diabetes, and heart disease. The U.S. Department of Health and Human Services anticipates that this will result in $1.5 billion in reduced out-of-pocket expenses for patients.

Here’s a list of the drugs that will have lower prices in 2026 and their percentage discounts for a 30-day supply:

In 2023, CMS estimated that Medicare Part D users spent a total of $3.9 billion out-of-pocket for these 10 medications.

SOURCES Centers for Medicare & Medicaid Services

Contributing: Ken Alltucker