Medicare-negotiated drug prices to halve out-of-pocket costs next year: report

Seeking Alpha ^ | 12/18/2025

[SeekAndFind]

U.S. nonprofit AARP projected on Thursday that out-of-pocket savings from the first 10 Medicare Part D drugs negotiated under the Biden administration's Inflation Reduction Act will exceed 50% on average next year.

The report, based on data from stand-alone Part D plans in five states with high Medicare enrollment, forecasts that Medicare enrollees will witness significantly lower monthly expenses for these medications beginning Jan. 1.

In August 2023, the Centers for Medicare and Medicaid Services (CMS) announced the first 10 Part D drugs selected for pricing negotiations, including blockbuster therapies from companies such as Bristol Myers (BMY)/ Pfizer (PFE) and Eli Lilly (LLY).

Drugs developed by AbbVie (ABBV)/Johnson & Johnson (JNJ), Bayer (BAYZF), AstraZeneca (AZN), Novartis (NVS), Merck (MRK), Amgen (AMGN), and Novo Nordisk (NVO) (NONOF) were also part of the list.

“Medicare prescription drug negotiation is on track to deliver billions in savings for America’s seniors starting in January, making lifesaving medication more affordable,” said Nancy LeaMond, AARP Executive Vice President.

“But beware: big drug companies are spending millions to delay negotiation and keep prices sky high—while lining their own pockets.”

In January, the CMS announced 15 additional Medicare Part D drugs selected for the next round of pricing negotiations, which will lead to revised prices in 2027.

Previously, the agency projected that pricing negotiations for the first 10 drugs would lower Medicare beneficiaries' out-of-pocket costs by $1.5B and cause $6B in savings for U.S. taxpayers next year.

[SmokingJoe]

Is healthcare too expensive in America?
Yup.
Most of it from fraud, and deliberately expensive drug prices.
Trump has negotiated sharp reductions in drug prices, but next steps will come from people like Elon Must, with his Neuralink, Grok AI and Optimus robots.
Look for big changes by 5 year's time.

[Jim Noble]

They’re still marked up 80%.

The Republicans have a narrow window to create a decent system but they show no signs of life.

[jimtorr]

Xarelto, a blood thinner I take, is $40 per month, with insurance. Next year it will be $7 per month.