CMS reaches agreements to save the Medicare program $6 billion.

The U.S. announced a 5.06% average increase in the government's final reimbursement rates for 2026 Medicare Advantage health plans run by private insurers, more than double the increase it proposed in January.

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After a series of negotiations with drugmakers, the Centers for Medicaid and Medicare (CMS) reached agreements that will save the Medicare program an estimated $6 billion. Medicare Part D enrollees, who pay a portion of the drug cost, would save $1.5 billion in out-of-pocket expenses.

The negotiated prices will take effect January 1, 2026.

An image of colorful spilled pills on a yellow background. Image courtesy of Etactics Inc on Unsplash.