The Centers for Medicare and Medicaid Services has confirmed the standard monthly premium will rise to $202.90 next year.

The prescription drug legislation in the Inflation Reduction Act of 2022 — backed by AARP — directed the Department of Health and Human Services to work with pharmaceutical companies to secure reduced prices on 10 widely used, brand-name medications that are expensive and lack generic or biosimilar alternatives.

The negotiated prices are a result of a program passed by Congress in 2022 as part of the Inflation Reduction Act (IRA). The measure lowers prescription drug costs for seniors by empowering Medicare to negotiate the cost of prescription drugs. The negotiated prices include:

Pharma companies are facing pricing pressure from several directions, including from the U.S. Medicare negotiations

AdvaMed supports the legislation, which is intended to ensure AI-enabled devices receive an accurate CMS payment code.

The U.S. Medicare health plan said on Tuesday that newly negotiated prices for 15 of its costliest drugs will save 36% on those medications compared with recent annual spending, or about $8.5 billion in net covered prescription costs.

A higher Medicare Part B premium in 2026 could erode next year's cost-of-living adjustment for Social Security recipients, experts say.