Medicare Drug Price Negotiation: All Manufacturers Commit to Third Cycle of Talks
A Milestone for Medicare: Manufacturers Join the Third Round of Price Negotiations
In a significant step forward for the Inflation Reduction Act’s mission to lower healthcare costs, the Centers for Medicare & Medicaid Services (CMS) recently announced that all manufacturers of the 15 drugs selected for the third cycle of the Medicare Drug Price Negotiation Program have signed agreements to participate.
This update signals a continued shift in how the U.S. government approaches the cost of high-expenditure, single-source drugs. By bringing pharmaceutical giants to the table, CMS aims to secure “maximum fair prices” that will directly benefit millions of seniors and people with disabilities.
Which Drugs are on the List?
The third cycle includes a diverse range of medications across Medicare Part B and Part D, treating conditions such as diabetes, autoimmune diseases, and cancer. Notable drugs and their participating manufacturers include:
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Biktarvy (Gilead Sciences) – HIV treatment
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Trulicity (Eli Lilly) – Type 2 diabetes
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Xolair (Genentech) – Asthma and chronic hives
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Cosentyx (Novartis) – Psoriasis and arthritis
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Botox/Botox Cosmetic (AbbVie) – Chronic migraines and therapeutic uses
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Tradjenta (Boehringer Ingelheim) – Selected for renegotiation
The full list covers some of the most widely used and costly medications in the Medicare program.
The Road to 2028: What Happens Next?
While the manufacturers have agreed to participate, the actual price negotiations are just beginning. Here is the timeline for what patients and providers can expect:
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Patient & Clinician Input (Spring 2026): CMS will host 16 patient-focused roundtables and town hall meetings to understand the clinical impact and patient experience of these specific drugs.
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Initial Offers (By June 1, 2026): CMS will send an initial price offer to each manufacturer with a justification for the proposed “maximum fair price.”
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Counteroffers & Negotiation (Summer/Fall 2026): Manufacturers have 30 days to respond. Up to two additional negotiation meetings may occur if an agreement isn’t reached immediately.
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Final Prices Announced (By November 1, 2026): The negotiated prices for this cycle will be finalized by late 2026.
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Effective Date: The new, lower prices for these 15 drugs will officially take effect on January 1, 2028.
Why This Matters
For years, Medicare was prohibited by law from negotiating drug prices directly. This program changes the landscape by focusing on medications that lack generic or biosimilar competition and account for the highest spending within the program.
By considering research and development costs, production expenses, and the clinical benefit to patients, CMS is working to ensure that taxpayer dollars are used effectively while keeping life-saving medications accessible.
Final Thoughts
The participation of all invited manufacturers is a win for the program’s momentum. As the process moves into the public comment and negotiation phases, the focus remains on transparency and the ultimate goal: making healthcare more affordable for the American public.
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