CMS Releases Next List for Drug Price Negotiation

CMS this morning announced the selection of 15 additional drugs covered under Medicare Part D that will be subject to price negotiations as part of the Inflation Reduction Act. Negotiations with participating drug companies begin this year and the new prices will become effective in 2027.

Between November 2023 and October 2024, about 5.3 million people with Medicare Part D coverage used these 15 drugs (see list below). These drugs accounted for about $41 billion in total gross covered prescription drug costs under Medicare Part D, or about 14%, according to CMS.

The manufacturing companies have until Feb. 28, 2025, to decide if they will participate in negotiations. CMS has said that during the negotiations

In the first cycle of negotiations, Medicare negotiated with the participating drug manufacturers and reached agreement on new, lower prices for all 10 drugs. Those prices will become effective starting Jan. 1, 2026. CMS officials estimated had the negotiated prices been effect, they would have saved an estimated $6 billion in net covered prescription drug costs, or approximately 22%, across the 10 selected drugs.

Related: Questions Remain about Whether Negotiated Drug Prices will Save Money

The selected drug list for the second cycle of negotiations include:

• Ozempic; Rybelsus; Wegovy: type 2 diabetes, obesity
• Trelegy Ellipta: asthma and chronic obstructive pulmonary disease
• Xtandi: prostate cancer
• Pomalyst: Kaposi sarcoma; multiple myeloma
• Ibrance: breast cancer
• Ofev: idiopathic pulmonary fibrosis
• Linzess; chronic constipation; irritable bowel
• Calquence: chronic lymphocytic leukemia; small lymphocytic leukemia; mantle cell lymphoma
• Austedo; Austedo XR: chorea in Huntington’s disease; tardive dyskinesia
• Breo Ellipta: asthma; chronic obstructive pulmonary diseae
• Tradjenta: type 2 diabetes
• Xifaxan: hepatic encephalopathy; irritable bowel syndrome with diarrhea
• Vraylar: bipolor I disorder; major depressive disorder; schizophrenia
• Janumet; Janumet XR: type 2 diabetes
• Otezla: plaque psoriasis; psoriatic arthritic arthritis; oral ulcers in Behcet’s disease