The government has raised its benchmark price of Medicare to £8,000 a year from £7,000, as the cost of providing care to patients continues to soar.
In a move designed to make up for a rise in the price of medicines over the past two years, the Government has raised the benchmark price to £9,000 for new Medicare beneficiaries from £6,000.
The Government said the change will also mean the cost per person will be cut by more than £5,000 in the next four years.
The price of the cheapest medication in England and Wales has been unchanged since the first phase of the rollout in 2014.
The changes come on top of a £1,000 increase for prescription drugs in July, while the cost for prescriptions will also increase by £1.30 a day.
The Government is also looking to the future with a consultation that will see more people asked to pay more for prescriptions.
The cost of medicines is already rising by around £20 a week and will rise further in the coming months, according to the Office of National Statistics.
The UK average for an oral contraceptive pill has increased by 5.2% since last year.
The average price for a prescription drug in England is also increasing.
A new drug will cost £7 a day, up from £5.50 a day in 2019.
The biggest rise is seen for the generic version of the fluoroquinolones and cefuroxime, which are used to treat infections.
The prices for both drugs have increased by 2.5% over the same period.
In England and the Northern Ireland, the average price of a generic version has risen by 11.3%.
The average cost of a cephalosporin is up by 9.2%, while the average cost for the fluoquinolone has risen 13.5%.
In Wales, the generic price of fluoroquine rose by 8.2%.
In Scotland, the price for fluoroepidemics is rising by 2%.