Lower prices for the first 10 Medicare-negotiated drugs take effect January 1, 2026, marking a historic shift made possible by the Medicare Drug Price Negotiation Program in the 2022 prescription drug law championed by AARP
December 31, 2025 - WASHINGTON— Ahead of January 1 when Medicare-negotiated prices for 10 prescription 
drugs take effect for the first time in history, AARP Executive Vice President and Chief Advocacy & Engagement Officer Nancy LeaMond issued the following statement:
“For millions of older Americans managing chronic conditions, prescription drugs are not optional—they are a lifeline. But medicine doesn’t work if people can’t afford it. That’s why for decades, AARP has been at the forefront of fighting to lower drug prices. AARP led the charge advocating for the drug pricing reforms in 2022, mobilizing our members, elevating their stories, conducting research and pressing policymakers on both sides of the aisle. That advocacy has delivered important progress, and on January 1, negotiated prices take effect for the first time – marking a major milestone for patients and taxpayers. Older Americans will see real results and billions in savings as the first Medicare-negotiated prices take effect. AARP won’t stop fighting to lower drug prices until every American can get the medications, they need at a price they can afford.”
AARP’s latest prescription drug report 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 expected to save enrollees $1.5 billion in out-of-pocket costs in 2026, according to the Centers for Medicare & Medicaid Services (CMS).
Source: AARP
