Medicare enrolled will see lower costs on select drugs

With Medicare Open Enrollment ending next week, the Centers for Medicare & Medicaid Services (CMS) has announced that last year’s Medicare negotiations produced a net savings of 44 percent, or about $12 billion, on 15 widely used prescription drugs that treat cancer and other serious chronic conditions.

The new Maximum Fair Prices (MFPs) for these 15 drugs will take effect on Jan. 1, 2027. Combined with the 10 drugs already negotiated, whose MFPs take effect Jan. 1, 2026, a total of 25 drugs will have negotiated lower prices. These medications, used to treat conditions such as cancer, diabetes, asthma, and cardiovascular and neurological disorders, represent some of the highest Medicare Part D spending.

Three years ago, after President Biden signed the Inflation Reduction Act in August 2