Monthly Medicare Drug Price Negotiation Savings by State

Medicare drug price negotiation will result in thousands of dollars in net price savings for 30-day supplies of the first 10 drugs undergoing negotiation; here’s how those savings add up state by state.

Strengthening Health, Health, Health Care Costs, Health Coverage and Access, Prescription Drug Pricing +2 More

Farxiga, Xarelto, Entresto, and Eliquis are made available to customers at the New City Halsted Pharmacy in Chicago. — Farxiga, Xarelto, Entresto, and Eliquis are made available to customers at New City Halsted Pharmacy in Chicago on August 29, 2023. These are 4 of 10 prescription drugs that will be subject to Medicare price negotiations under the Inflation Reduction Act. (Getty/Scott Olson)

Medicare Drug Price Negotiation Will Lower Prices by Thousands of Dollars per Month

Feb 21, 2024

Nicole Rapfogel

The Inflation Reduction Act of 2022 enabled Medicare to negotiate prices for prescription drugs for the first time in the program’s history. In August 2023, the Centers for Medicare and Medicaid Services announced the first 10 Medicare Part D drugs selected for negotiation. Negotiated prices will be announced by September 1, 2024, and those prices will take effect in January 2026.

In a previous analysis, the Center for American Progress estimated net Medicare price reductions for 30-day supplies of each of the 10 drugs currently undergoing negotiation, finding that 30-day net price reductions for negotiation-eligible drugs could range from a low of $30 for insulin product NovoLog FlexPen to a high of $6,548 for cancer drug Imbruvica. These first 10 drugs are used by roughly 9 million Medicare Part D beneficiaries across the United States. Subsequently, even small per-person reductions in monthly prices could amount to millions of dollars in annual Medicare savings.

The interactive table below shows estimated net price reductions for 30-day supplies of each of the 10 drugs undergoing negotiation. Use the drop-down menu to select your state and see how many Medicare Part D beneficiaries stand to benefit from Medicare drug price negotiation.

TABLE 1

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Author

Nicole Rapfogel

Former Senior Policy Analyst, Health Policy

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