Skip to content
ContentLora

    Tip: press / anywhere to search.

    concept

    Medicare Drug Price Negotiation Program

    Also known as Medicare drug price negotiation, IRA drug price negotiation, Negotiation Program

    The Medicare Drug Price Negotiation Program lets CMS negotiate prices for high-spending drugs that face no generic or biosimilar competition. Prices for the first 10 drugs took effect on 1 January 2026, and prices for 15 more, including Ozempic and Wegovy, take effect on 1 January 2027.[1][2] A third set of 15 drugs, including Part B drugs for the first time, is being negotiated in 2026, with prices due by 30 November 2026 and effective in 2028.[3][4]

    Editor reviewedStrict sourcingUpdated WikiHealth and medicine, Tech policy
    Key facts

    The Medicare Drug Price Negotiation Program is the process through which CMS negotiates prices for some of the highest-spending drugs in Medicare. It covers drugs without generic or biosimilar competition.[5] Negotiated prices first applied in 2026, and the list grows each year.[1][6] Drug pricing is a political issue, so statements by officials are attributed. This page is not medical or financial advice. Ask a clinician or pharmacist before changing any medicine.

    How it works

    Each year CMS selects drugs, makes offers, negotiates with manufacturers and publishes the resulting prices. For the 2028 cycle, CMS’s final offers were due by 30 September 2026. Drug companies must accept or reject them by 31 October 2026, and prices must be announced by 30 November 2026.[4] Starting in 2027, up to 20 additional Part B or Part D drugs will be selected each year.[6] The manufacturers of all 15 third-cycle drugs, and of the drug chosen for renegotiation, agreed to take part.[5]

    Rounds so far

    2026 prices. Ten Part D drugs, including Eliquis, Jardiance and Stelara, have had negotiated prices since 1 January 2026.[1] CMS estimated Medicare would have saved $6 billion, or 22% net, had those prices applied in 2023.[7]

    2027 prices. Medicare reached agreement on all 15 second-round drugs, which include Ozempic and Wegovy. The prices take effect on 1 January 2027.[2] The 30-day price for Ozempic, Rybelsus and Wegovy is $274, against a 2024 list price of $959.[8] CMS estimated the second-round prices would have cut net spending by about $8.5 billion, or about 36%, had they applied in 2024. It estimated beneficiaries will save $685 million in 2027.[2][9] See semaglutide for the drug itself.

    2028 prices. On 27 January 2026, CMS chose 15 drugs, including Part B drugs for the first time, and picked Tradjenta for the first renegotiation.[3] About 1.8 million people with Medicare used these drugs over a year, at a cost of about $27 billion, or 6% of Part B and D spending.[10]

    Changes in the 2025 law

    The 2025 reconciliation law broadened the exclusion for orphan drugs, which treat rare diseases. KFF says this delayed the selection of the biologic drugs Keytruda and Opdivo beyond 2026.[11]

    Positions

    CMS Administrator Mehmet Oz said that under President Trump, CMS is targeting the most expensive drugs in Medicare and negotiating fair prices.[12] For how this fits with 2027 Medicare costs, see the Medicare 2027 explainer. For GLP-1 drugs, see the GLP-1 access and pricing debate.

    Next in the crash course

    Developing in Health

    Questions readers ask

    Which drugs have Medicare negotiated prices in 2026?

    Ten Part D drugs, including Eliquis, Jardiance, Xarelto, Januvia, Farxiga, Entresto, Enbrel, Imbruvica, Stelara and Fiasp/NovoLog, from 1 January 2026.[1]

    Is Ozempic part of Medicare drug price negotiation?

    Yes. Ozempic, Rybelsus and Wegovy were in the second round, with a negotiated 30-day price of $274 effective 1 January 2027.[2][8]

    Which drugs are being negotiated for 2028?

    Anoro Ellipta, Biktarvy, Botox, Cimzia, Cosentyx, Entyvio, Erleada, Kisqali, Lenvima, Orencia, Rexulti, Trulicity, Verzenio, Xeljanz and Xolair, plus Tradjenta for renegotiation.[3]

    When will the 2028 negotiated prices be announced?

    Drug companies must accept or reject CMS's final offers by 31 October 2026, the negotiation period ends on 1 November, and CMS must announce negotiated prices by 30 November 2026.[4]

    How much does negotiation save?

    CMS estimated $6 billion (22% net) for the first round had prices applied in 2023, and about $8.5 billion (about 36% lower net spending) for the second round had prices applied in 2024.[7][2]

    Sources

    · 12 claims from 4 publishers

    Each numbered claim is a statement we checked against the sources listed with it. Tap a number in the text to see its sources in place.

    1. [1]

      Medicare's negotiated prices for the first 10 Part D drugs, including Eliquis, Jardiance, Xarelto, Januvia, Farxiga, Entresto, Enbrel, Imbruvica, Stelara and Fiasp/NovoLog, took effect on 1 January 2026. confirmedas of 2026-03-11

    2. [2]

      In the second cycle Medicare reached agreement on all 15 selected Part D drugs, including Ozempic and Wegovy; the prices take effect on 1 January 2027, and CMS estimated they would have saved about $8.5 billion (about 36% lower net spending) had they applied in 2024. confirmedas of 2026-01-27

    3. [3]

      On 27 January 2026 CMS selected 15 drugs for the third cycle, including the first Part B drugs, with prices effective 1 January 2028; the list is Anoro Ellipta, Biktarvy, Botox, Cimzia, Cosentyx, Entyvio, Erleada, Kisqali, Lenvima, Orencia, Rexulti, Trulicity, Verzenio, Xeljanz and Xolair, and Tradjenta was picked for renegotiation. confirmedas of 2026-01-27

    4. [4]

      For the third cycle, CMS's final written offers were due by 30 September 2026, drug companies must accept or reject them by 31 October 2026, the negotiation period ends on 1 November 2026, and CMS must publish negotiated prices by 30 November 2026. confirmedas of 2026-03-11

    5. [5]

      Under the Negotiation Program CMS directly negotiates prices of certain high-expenditure, single-source drugs without generic or biosimilar competition; on 13 March 2026 it announced that the manufacturers of all 15 third-cycle drugs, and of the drug selected for renegotiation, chose to participate. confirmedas of 2026-03-13

    6. [6]

      Under the Inflation Reduction Act, up to 20 drugs are selected for negotiation for each price year from 2029 on, with selection starting in 2027. confirmedas of 2026-03-11

    7. [7]

      CMS estimated Medicare would have saved $6 billion, or 22% net, if the first-round negotiated prices had applied in 2023. confirmedas of 2026-03-11

    8. [8]

      Under the Medicare Drug Price Negotiation Program, CMS set a negotiated 30-day price of $274 for Ozempic, Rybelsus and Wegovy, against a 2024 list price of $959, effective 1 January 2027. confirmedas of 2025-11-25

    9. [9]

      CMS estimated Medicare beneficiaries will save $685 million in out-of-pocket costs when the second-round prices take effect in 2027. confirmedas of 2026-03-11· forecast

    10. [10]

      About 1.8 million people with Medicare used the 15 third-cycle drugs between November 2024 and October 2025, accounting for about $27 billion, or about 6% of Part B and D spending. confirmedas of 2026-01-27

    11. [11]

      The 2025 reconciliation law broadened the orphan-drug exclusion from negotiation to drugs approved for one or more rare diseases, applying from the 2028 price year; KFF says this delayed selection of Keytruda and Opdivo beyond 2026. confirmedas of 2026-03-11

    12. [12]

      CMS Administrator Mehmet Oz said that under President Trump CMS is targeting the most expensive drugs in Medicare and negotiating fair prices. confirmedas of 2026-01-27

    Revision history (1)
    1. Page created.

    Created Oct 11, 2026. Last reviewed by an editor on Oct 11, 2026. Next scheduled review: Dec 1, 2026.

    Cite this page

    "Medicare Drug Price Negotiation Program." ContentLora, updated Oct 11, 2026. https://contentlora.com/wiki/medicare-drug-price-negotiation

    Spotted an error? Suggest a correction or emailcorrections@contentlora.com.

    Connections
    Centers for Medicar… Run bySemaglutide Includes drug
    ☰ Contents