The Centers for Medicare & Medicaid Services (CMS) has announced a new list of 15 prescription drugs selected for price negotiations under the federal Medicare program. These drugs represent some of the highest-cost treatments covered under Medicare Parts B and D and span a wide range of conditions including Type 2 diabetes, HIV, psoriasis, and cancer.
The selected medications accounted for approximately $27 billion in spending and were used by 1.8 million Medicare enrollees over the past year. According to CMS, the goal is to reduce out-of-pocket costs for seniors and ease the overall burden on taxpayers, with negotiated prices expected to take effect in January 2028.
Expansion of Price Negotiation to Part B Drugs
For the first time, drugs reimbursed through Medicare Part B (typically administered in outpatient clinical settings) have been included in the negotiation program. Previously, only drugs under Part D, which covers retail prescriptions, were eligible.
Among the drugs now slated for negotiation are: Anoro Ellipta, Biktarvy, Botox and Botox Cosmetic, Cimzia, Cosentyx, Entyvio, Erleada, Kisqali, Lenvima, Orencia, Rexulti, Trulicity, Verzenio, Xeljanz and Xeljanz XR and Xolair. Also included is Tradjenta, a Type 2 diabetes drug that was previously negotiated and will now undergo its first re-negotiation.
The move comes as part of the Trump administration’s broader strategy to address rising drug costs. “Under President Trump’s leadership, CMS is taking strong action to target the most expensive drugs in Medicare, negotiate fair prices, and make sure the system works for patients — not special interests,” said CMS Administrator Dr. Mehmet Oz, according to an official statement.
CMS selected the 15 drugs based on spending data, clinical benefit, and availability of therapeutic alternatives. Each manufacturer will have until February 28, 2026, to decide whether to participate in negotiations. The revised prices are scheduled to go into effect on January 1, 2028.
Industry Backlash and Impact on Pharmaceutical Landscape
Not all stakeholders support the administration’s approach. The Pharmaceutical Research and Manufacturers of America (PhRMA) criticized the negotiation program, arguing it could disrupt innovation and competition. “The IRA continues to show why government price setting is the wrong approach for Americans,” said Elizabeth Carpenter, PhRMA’s executive vice president of policy and research.
According to CMS, the Inflation Reduction Act of 2022 gave the agency legal authority to negotiate prices on behalf of Medicare beneficiaries. This year’s selection marks the third round of the program, expanding the total number of negotiated drugs to 40.
Reactions from advocacy groups were more favorable. AARP CEO Dr. Myechia Minter-Jordan described the announcement as “a significant step forward,” noting that “older Americans across the political spectrum consistently say that lowering drug prices is a top priority.”
As negotiations continue, CMS stated it will evaluate each drug’s clinical value, development costs, and how well it addresses unmet medical needs. The selected drugs are among the top 15 highest-spending treatments on a larger list of 50 eligible candidates, which was also released as part of the agency’s transparency commitment.
With negotiations set for 2026 and new prices to be enacted in 2028, the long-term impact on Medicare costs and patient affordability remains to be seen. What is clear is that the policy marks a shift in how the government addresses the growing challenge of prescription drug pricing.
