Medicare’s disclosure of actual drug prices marks a significant step, with the new prices expected to save $6 billion in 2026. However, comparisons with prices in other wealthy nations reveal that these countries have secured far lower costs for the same drugs. For instance, a 30-day supply of nine of the ten negotiated drugs will cost $17,581 for Medicare in 2026, compared to $6,725 in Sweden today.

Medicare’s disclosure of actual drug prices marks a significant step, with the new prices expected to save $6 billion in 2026. However, comparisons with prices in other wealthy nations reveal that these countries have secured far lower costs for the same drugs. For instance, a 30-day supply of nine of the ten negotiated drugs will cost $17,581 for Medicare in 2026, compared to $6,725 in Sweden today.

Medicare’s negotiations have resulted in the most significant savings for drugs with little competition, such as Amgen’s Enbrel, Bristol Myers' Eliquis, and Johnson & Johnson’s Stelara. Despite these savings, U.S. prices remain much higher than those abroad, where generic alternatives and stricter price controls help keep costs down.

As Medicare continues to negotiate prices for more drugs, which account for a third of U.S. drug spending, there is potential for the U.S. to better balance affordability with the need for ongoing pharmaceutical innovation.