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AARP warns Medicare drug pricing gap could hit Part D premiums after 2026
AARP says U.S. prices for 25 top-selling brand-name drugs rose 81% on average after launch, while prices for the same medicines fell 13% in 19 comparable countries.
AARP is urging action on Medicare drug costs, citing a new report that examines pricing for 25 top-selling brand-name medications that account for more than $100 billion in annual Medicare spending.
The report highlights that U.S. prices for the studied drugs climbed 81% on average after their initial market launch, while prices for the same medications fell 13% on average across 19 comparable countries.
AARP says the timing is especially important because a federal subsidy program for standalone Medicare drug plans ends after 2026, a change that could increase financial pressure for roughly 25 million Americans enrolled in Medicare Part D, with the group also tying the case to expanded drug price negotiation that began producing results in 2026.
The report also points to large cross-country divergences for specific drugs, including Enbrel, which AARP says rose 873% in the U.S. after launch while falling 27% internationally, and Januvia, which rose 126% in the U.S. while declining 40% abroad.