New AARP Report Shows Out-of-Pocket Costs for Medicare Negotiated Drugs Will Drop by More Than 50% in 2026

WASHINGTON - AARP's latest prescription drug report released today finds that out-of-pocket costs for the first 10 Medicare-negotiated prescription drugs will fall by an average of more than 50% for people in stand-alone Part D plans when the negotiated prices take effect on January 1, 2026. The drugs are used by nearly 9 million Medicare seniors and treat conditions including diabetes, heart disease, autoimmune disorders, and cancer. The Medicare Drug Price Negotiation Program is possible thanks to the 2022 prescription drug law that AARP championed.

"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 and Chief Advocacy & Engagement Officer. "But beware: big drug companies are spending millions to delay negotiation and keep prices sky high-while lining their own pockets. As the voice for 125 million Americans age 50 and over, AARP will keep fighting any attempts to undermine Medicare's ability to negotiate prescription drugs."

"Our report shows that Medicare beneficiaries should see substantially lower monthly costs for these medicines in 2026," said Leigh Purvis, AARP's Prescription Drug Policy Principal, and author of the report. "This will improve access for seniors who were previously facing high out-of-pocket costs and confirms that Medicare drug price negotiation is providing real benefits for people in the Medicare program."

The Medicare drug price negotiation program is expected to save enrollees $1.5 billion in out-of-pocket costs in 2026, according to the Centers for Medicare & Medicaid Services (CMS).

The new AARP report analyzes data from stand-alone Part D plans in five states with high Medicare enrollment and finds that lower negotiated drug prices are translating into real, measurable savings for older Americans. Other takeaways from the report include:

• Seven of the ten negotiated drugs will cost enrollees less than $100 per month in 2026
• All of the stand-alone Part D plans in the study will cover all ten drugs next year, an increase from current coverage levels

The full AARP report can be found here.

To learn more about AARP's work to lower prescription drug prices, visit AARP.org.

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About AARP

AARP is the nation's largest nonprofit, nonpartisan organization dedicated to empowering Americans 50 and older to choose how they live as they age. With a nationwide presence, AARP strengthens communities and advocates for what matters most to the 125 million Americans 50-plus and their families: health and financial security, and personal fulfillment. AARP also works for individuals in the marketplace by sparking new solutions and allowing carefully chosen, high-quality products and services to carry the AARP name. As a trusted source for news and information, AARP produces the nation's largest-circulation publications, AARP The Magazine and AARP Bulletin. To learn more, visit www.aarp.org/about-aarp/, www.aarp.org/español or follow @AARP, @AARPLatino and @AARPadvocates on social media.