Home / Health / Drug Prices Surge in 2026: New Year, Higher Costs
Drug Prices Surge in 2026: New Year, Higher Costs
18 Jan
Summary
- Hundreds of drugs saw list price increases in early 2026.
- Median price hike was 4%, similar to the previous year.
- Federal efforts and negotiation aim to mitigate rising costs.
Pharmaceutical companies have initiated 2026 with significant list price increases on hundreds of medications. Data from 46brooklyn Research indicates over 850 drugs saw a median 4% price hike compared to 2025 levels. These increases affect a wide range of drugs, including the COVID-19 vaccine and popular treatments like Ozempic. While list prices don't directly reflect consumer costs, they contribute to higher expenses for insurers and can lead to increased patient out-of-pocket spending.
Despite these hikes, drugmakers like Pfizer assert that average net prices, after rebates, have decreased, and modest increases are necessary for continued investment in new drug development. Novo Nordisk and Eli Lilly increased prices on Ozempic and Mounjaro by 3%, with insurance coverage varying for diabetes versus weight-loss indications. In 2025, both companies had offered discounts on weight-loss versions for cash-paying consumers.
These price adjustments occur amidst ongoing federal pressure to lower drug costs. The Inflation Reduction Act allows Medicare to negotiate prices for a select group of drugs, projected to save enrollees significantly on out-of-pocket expenses. Former President Trump's 'most favored nation' deals also aimed to provide discounted medications, particularly benefiting uninsured individuals.
