Rep. Cuellar Highlights Historic Decline in Prescription Drug Prices

Prescription drug prices see largest 12-month decline since 1963 as Medicare-negotiated prices take effect

WASHINGTON – Prescription drug prices see largest 12-month decline since 1963 as Medicare-negotiated prices take effect 

U.S. Congressman Henry Cuellar, Ph.D. (D-TX-28) supported and voted for the Inflation Reduction Act, which gave Medicare the authority to negotiate prices directly with pharmaceutical manufacturers for certain high-cost prescription drugs. The first negotiated prices took effect this year.

“Lower prescription drug prices are good news for South Texas seniors and families,” said Congressman Cuellar. “I voted for the Inflation Reduction Act because Medicare should be able to negotiate lower prescription drug prices. Those negotiated prices are now in effect, and I welcome any effort by this administration or Congress that lowers costs for patients.”

The first Medicare-negotiated prices took effect on January 1, 2026, for 10 widely used prescription drugs that treat conditions including diabetes, heart disease, cancer, blood clots, and autoimmune diseases. The Centers for Medicare & Medicaid Services estimates the negotiated prices will save people with Medicare approximately $1.5 billion in out-of-pocket costs in 2026.

The Inflation Reduction Act also included additional measures to reduce prescription drug costs for people with Medicare, including:

• A $2,100 annual limit on out-of-pocket costs for covered Medicare Part D prescription drugs in 2026;

• Covered insulin products generally costing no more than $35 for a month’s supply;

• Recommended adult vaccines covered under Medicare Part D without cost-sharing; and

• The option to spread out-of-pocket prescription drug costs across monthly payments throughout the year.

Medicare has also negotiated prices for 15 additional high-cost prescription drugs, with those prices set to take effect on January 1, 2027.

“Prescription drug costs are moving in the right direction, but too many South Texas families are still paying too much at the pharmacy counter,” said Congressman Cuellar. “I will continue working with Republicans, Democrats, and the administration to keep prescription drug costs down. No senior should have to choose between filling a prescription and paying their bills.”

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