The United States will continue to pay significantly more for prescription drugs compared to other high-income countries despite Medicare’s negotiated prices for prescription drugs.
A Reuters review has found that the even with the negotiated price reductions announced last month, the U.S. will pay an average of twice as much and, at times, up to five times more than other high-income countries for the same drugs.
For the first time, Medicare negotiated to reduce the price of 10 high-cost prescription drugs, which is projected to save $6 billion when they go into effect in 2026. The negotiated drugs in the Medicare Part D prescription drug program are among the most expensive and most frequently dispensed drugs in the Medicare program and are used to treat conditions such as heart disease, diabetes, and cancer.
The selected drugs include Eliquis, Jardiance, Xarelto, Januvia, Farxiga, Entresto, Enbrel, Imbruvica, Stelara, and Fiasp; Fiasp FlexTouch; Fiasp PenFill; NovoLog; NovoLog FlexPen; NovoLog PenFill.
In its review, Reuters compared publicly available maximum prices for nine of the 10 prescription drugs set by other wealthy countries, including Australia, Japan, Canada, and Sweden. Comparable prices were not available for the 10th drug, Novolog.
Reuters compared what a 30-day supply of each of the nine prescriptions will cost under Medicare 2026 prices with the other countries’ 2024 prices (in U.S. dollars). Across the board, the U.S. will be paying significantly more.
For example, the price for a 30-day supply of Imbruvica with Medicare in 2026 will be $9,319, compared to the 2024 prices of $4,607 in Sweden; $5,389 in Australia; and $5,505 in Japan. There was a similar trend for all nine prescription drugs.
Further, a 30-day supply of nine of the 10 drugs will cost $17,581 for Medicare in 2026, compared to $6,725 in Sweden this year.
According to the review, the U.S. has historically paid more for prescription drugs, which has been attributed to factors including a continued willingness to pay more, having a faster uptake of new and more expensive drugs, and existing U.S. patents on brand-name drugs preventing cheaper alternatives.
The price negotiations are set to continue each year. The Centers for Medicare & Medicaid Services will select up to 15 additional drugs covered under Medicare Part D open for negotiation for 2027, up to 15 more drugs covered under Part B and Part D for 2028, and up to 20 additional drugs for each following year thereafter.