Everything to know about the 10 drugs in the first Medicare price negotiations

The U.S. Department of Health and Human Services (HHS) this month announced the lowered prices of the first 10 prescription drugs that underwent Medicare negotiations. People that have Medicare prescription coverage are expected to save $1.5 billion in out-of-pocket costs in 2026, when the new prices go into effect, according to HHS.

The Inflation Reduction Act, which was passed by Congress in 2022, allowed for the Centers for Medicare and Medicaid Services (CMS) to negotiate the price for brand name drugs that make up the most of Medicare’s prescription drug spending. The selected drugs accounted for $56.2 billion in total Medicare spending in 2023, according to HHS.

However, the negotiated prices remain more than twice as high on average compared to what drugmakers have agreed to in four other high-income countries, according to a Reuters analysis. For example, a 30-day supply of nine out of ten drugs will cost Medicare $17,581 in 2026, compared to $6,725 in Sweden this year.,

CMS is set to select 15 more drugs for price negotiations by February 2025.

Here is everything you need to know about the 10 drugs that underwent the first Medicare price negotiations.

Januvia: down 79% to $113

The cost of Merck’s Januvia went down 79% to $113 from a list price of $527. The diabetes drug was used by about 843,000 Medicare enrollees in 2023 and accounted for over $4 billion in Medicare drug spending that year.

Fiasp and Novo Log: down 76% to $119

Novo Nordisk’s Fiasp and Novo Log insulins were reduced 76% to $119 from list prices of $527. The diabetes drugs were used by about 785,000 Medicare enrollees in 2023 and accounted for over $2.6 billion in Medicare drug spending that year.

Farxiga: down 68% to $178.50

AstraZeneca’s Farxiga was reduced 68% to $178.50 from a list price of $556. Farxiga was used by about 994,000 Medicare enrollees in 2023 to treat conditions like diabetes, heart failure, and kidney disease. It accounted for over $4.3 billion in Medicare drug spending that year.

Enbrel: down 67% to $2,355

The cost of Amgen’s Enbrel was lowered 67% to $2,355 from a list price of $7,106. The psoriasis and arthritis medication was used by about 48,000 Medicare enrollees in 2023. It accounted for over $2.9 billion in Medicare drug spending that year.

Jardiance: down 66% to $19

The cost of Boehringer Ingelheim’s Jardiance went down 66% to $197 from a list price of $573. The drug was used by over 1.88 million Medicare enrollees in 2023 to treat conditions like diabetes, heart failure, and chronic kidney disease. It accounted for over $8.8 billion in Medicare drug spending that year.

Stelara: down 66% to $4,695

Janssen’s Stelara was reduced 66% to $4,695 from a list price of $13,836. The drug was used by 23,000 Medicare enrollees in 2023 to treat conditions like psoriasis, psoriatic arthritis, Crohn’s disease, and ulcerative colitis. It accounted for over $2.9 billion in Medicare drug spending that year.

Xarelto: down 62% to $197

Jannsen’s Xarelto went down 62% to $197 from a list price of $517. The blood thinner was used by about 1.3 million Medicare enrollees in 2023 and accounted for over $6.3 billion in Medicare drug spending that year.

Eliquis: down 56% to $231

Bristol Myers Squibb’s Eliquis was reduced 56% to $231 from a list price of $521. The blood thinner was used by about 3.9 million Medicare enrollees in 2023 and accounted for a whopping $18.2 billion in Medicare drug spending that year.

Entresto: down 53% to $29

Novartis’s Entresto went down 53% to $295 from a list price of $628. The drug was used by about 664,000 Medicare enrollees in 2023 to treat heart failure. It accounted for over $2.9 billion in Medicare drug spending that year.

Imbruvica: down 38% to $9,319

The price of Pharmacyclics’s Imbruvica was cut 38% to $9,319 from a list price of $14,934. The blood cancer treatment was used by just 17,000 Medicare beneficiaries in 2023 and made up $2.3 million in drug spending that year.