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CMS moves forward with 3rd round of Medicare drug negotiations

The third round of the Medicare Drug Price Negotiation Program is moving forward with full manufacturer participation.

The program, created under the Inflation Reduction Act, allows CMS to directly negotiate prices for high-expenditure, single-source drugs covered by Medicare Part B and Part D that lack generic or biosimilar competition. The negotiated prices are scheduled to take effect in 2028.

The manufacturers of all 15  drugs selected for the third round have agreed to participate in the negotiation program, along with the manufacturer of one drug selected for renegotiation, according to a March 13 news release from CMS.

The 15 selected drugs are:

The drug selected for renegotiation is Xolair (Genentech).

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CMS finalized updated guidance for the third cycle Sept. 30, 2025, expanding orphan drug exclusions and incorporating Medicare Advantage encounter data into spending calculations. CMS will send initial price offers by June 1, with final agreements due by Nov. 1, 2026. Patient and clinician input will be collected through 16 public roundtables and town halls.

The third cycle builds on two previous negotiation rounds. In 2025, CMS negotiated prices for 15 drugs selected in the second cycle, including Ozempic, Wegovy, Xtandi and Vraylar. Those prices will take effect in 2027. The first round, finalized in 2024, resulted in price reductions for 10 drugs set to take effect in 2026. CMS has estimated those initial savings could have cut Medicare beneficiary drug costs by $6 billion in 2023 alone.

The post CMS moves forward with 3rd round of Medicare drug negotiations appeared first on Becker's Hospital Review | Healthcare News & Analysis.

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