Christina Ritter, Lara Strawbridge, Daniel Heider and the Medicare Drug Price Negotiation Team  

The price of 10 of the most expensive and dispensed prescription drugs in the Medicare Part D program for seniors will drop in 2026, thanks to the efforts of the Medicare Drug Price Negotiation Team, annually saving participants an estimated $1.5 billion in out-of-pocket costs.

The team, led by Christina Ritter, Lara Strawbridge and Daniel Heider from the Centers for Medicare and Medicaid Services developed the negotiation strategy and worked with pharmaceutical companies to reach mutually acceptable price reductions for drugs that treat heart disease, diabetes, cancer and other serious medical conditions.

At least 9 million people with Medicare Part D, which covers prescription costs for Medicare enrollees, take one or more of the 10 drugs on the negotiating list. “They built the program from scratch and met deadlines that felt near impossible…and they have established a strong foundation for how this program can be scaled and leveraged over time,” said Jonathan Blum, the principal deputy CMS administrator.

In 2022, Congress passed legislation that enabled Medicare to negotiate certain drug prices directly with pharmaceutical companies for the first time.

That year, Medicare enrollees spent nearly $4 billion in out-of-pocket costs on the 10 drugs the team negotiated, with high drug costs forcing many Medicare beneficiaries to choose between buying and taking their medications as prescribed, or paying for food, rent or other necessities.

The team’s work will not only reduce out-of-pocket costs for seniors—it will also reduce costs for Medicare itself. In 2023, the 10 drugs accounted for more than $56 billion in Medicare Part D spending on covered drug costs. CMS estimates the program would have saved an estimated $6 billion if the lower prices had been in effect that year.

Ritter led the overall effort, hiring and overseeing team members. Strawbridge dug into the policy work and Heider served as lead negotiator.

“It was so crucial to get this right,” said Cheri Rice, deputy director at the Center for Medicare. “This program touches millions of seniors in our country and out-of-pocket costs for drugs have been such a source of concern for many.”

Claire Hutchinson, a CMS senior advisor, said the team “met with patient advocacy groups and patients to learn what their concerns were, and conducted frequent open-door forums with health plans, manufacturers and pharmacies to get feedback on proposals.”

By setting up a system and processes, the team laid the groundwork to expand the number of drugs up for negotiation as required by the law. CMS plans to lower Medicare costs further by selecting up to 15 more drugs for negotiation in 2027, and another 15 for 2028.

“Drug pricing in this country is a mess,” Heider said. “It’s not great for patients, and it’s not transparent. To make a difference in that? That’s all the motivation I needed.”