News and Reports | May 6, 2026
WASHINGTON, D.C. — As debate continues around new proposals to lower prescription drug prices for Americans, one thing is clear: the 2022 prescription drug law is already helping to lower costs for millions of patients across the country.
“The facts speak for themselves,” said Merith Basey, CEO of Patients For Affordable Drugs. “The Medicare drug price reforms are delivering tangible savings and easier access for patients today. The priority now should be expanding what’s already working. Not only is it urgent, but it’s incredibly popular.”
Lower Costs Through Medicare Drug Price Negotiation
In January 2026, the first round of lower negotiated prescription drug prices took effect – targeting some of the highest-cost drugs in Medicare, with additional rounds underway. The first 10 drugs selected for negotiation were used by nearly 9 million people on Medicare and generated $1.5 billion in out-of-pocket savings in the first year alone. According to the Department of Health and Human Services (HHS) under the Trump Administration, the 15 drugs selected for the second round were used by 5.3 million people on Medicare and accounted for over $40 billion in Medicare spending. Medicare Negotiation will save taxpayers nearly $99 billion over the next decade and prevent more than 656,967 premature deaths over seven years due to improved treatment adherence and affordability.
Jackie Trapp’s drug Imbruvica was negotiated in the first round and saw a price reduction of 38%.
Lower Out-of-Pocket Costs for Seniors
Beginning in 2025, annual out-of-pocket spending for Medicare Part D drugs was capped at $2,000 – building on earlier reforms that reduced cost exposure and eliminated cost-sharing in the catastrophic phase. Roughly 11 million people on Medicare were expected to reach the cap and would pay nothing out-of-pocket for their covered prescription drugs after hitting that threshold in 2025. In total, these patients are projected to save $7.2 billion, or about $600 per person, with even greater savings – approximately $1,100 per person – for those without financial assistance.
Judy Aiken paid $9,000 per year before the out-of-pocket cap went into effect.
Insulin Costs Capped for Millions
Since 2023, monthly insulin costs for people on Medicare have been capped at $35 per prescription. More than 3 million people on Medicare use insulin, and the cap has replaced costs that often exceeded $100 – and in some cases hundreds of dollars – per month. If the cap had been in place earlier, patients on Medicare would have saved more than $760 million in out-of-pocket costs in a single year – or nearly $500 per person – reducing a major barrier to access and improving adherence to lifesaving treatment.
Stephen Hadfield lives with a rare cancer and type-2 diabetes. He is 73 and works two jobs to afford his medications. The $35 insulin copay cap reduced his costs by hundreds of dollars per month.
As of January 1, 2026, all major provisions of the law, including free vaccines and the inflation rebate, are in effect. What began as a series of phased-in reforms has lowered out-of-pocket costs, improved access, and brought greater predictability to millions of Americans.
As policymakers look ahead at a time when nine in ten Americans are calling on Congress to do more to lower prescription drug costs, these real-world impacts underscore the importance of building on what’s working and addressing the remaining barriers that keep patients from accessing and affording the medications they need.
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Patients For Affordable Drugs is the only national patient advocacy organization focused exclusively on policies that lower prescription drug prices. We empower and mobilize patients by amplifying their experiences with high drug prices to hold those in power to account and fight to shape and achieve system-changing policies that make prescription drugs affordable for all people in the United States. P4AD does not accept funding from organizations that profit from the development and distribution of drugs. To learn more, visit PatientsForAffordableDrugs.org