CMS Announces Selection of Drugs for Third Cycle of Medicare Drug Price Negotiation Program, Including First-Ever Part B Drugs

CMS Announces Selection of Drugs for Third Cycle of Medicare Drug Price Negotiation Program, Including First-Ever Part B Drugs

Negotiations Will Occur in 2026 With Negotiated Prices Effective in 2028

The Centers for Medicare & Medicaid Services (CMS) announced the selection of 15 high-cost prescription drugs covered under Medicare Part D and, for the first time, drugs payable under Medicare Part B for the third cycle of the Medicare Drug Price Negotiation Program. CMS also selected one previously negotiated drug for the program's first renegotiations. Negotiations with participating drug companies will occur in 2026 and any negotiated and renegotiated prices will become effective January 1, 2028.

Today's announcement builds on the Trump Administration's efforts to reduce prescription drug costs. In the second cycle of negotiations, Medicare reached agreement with participating manufacturers on all 15 selected drugs. Those prices will take effect January 1, 2027. If those new prices had been in effect in 2024, they would have saved an estimated $8.5 billion in net covered prescription drug costs (inclusive of Coverage Gap Discount Program Spending), which would have amounted to approximately 36% lower net spending in aggregate.

"For too long, seniors and taxpayers have paid the price for skyrocketing prescription drug costs," said CMS Administrator Dr. Mehmet Oz. "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. This approach delivers real savings while strengthening accountability across the program."

Between November 2024 and October 2025, approximately 1.8 million people with Medicare Part D or Medicare Part B coverage used the 15 drugs selected for initial negotiation to treat a variety of conditions, including cancer, psoriatic arthritis, and human immunodeficiency virus type 1 infection. These drugs accounted for approximately $27 billion in total prescription drug spending under Medicare Part B and Part D, representing about 6 percent of total Part B and Part D spending.

CMS is also releasing a list of 50 top negotiation-eligible drugs based on combined expenditures under Medicare Parts B and D. The drugs selected for the third cycle represent the top 15 highest-spending drugs on this list.

"The publication of the list of top 50 negotiation-eligible drugs evidences CMS' commitment to transparency," said CMS Deputy Administrator and Director of Medicare Chris Klomp. "By applying clear eligibility criteria and practical negotiation policies, we are ensuring the program responds to market changes while delivering fairness and value for the American people."

The selected drug list for the third cycle of negotiations is:

• Anoro Ellipta
• Biktarvy
• Botox; Botox Cosmetic
• Cimzia
• Cosentyx
• Entyvio
• Erleada
• Kisqali
• Lenvima
• Orencia
• Rexulti
• Trulicity
• Verzenio
• Xeljanz; Xeljanz XR
• Xolair

The selected drug for renegotiation is:

All drugs were selected in accordance with the final guidance for the third cycle of negotiations, which incorporated refinements based on public feedback to increase the transparency of the Negotiation Program.

Drug companies with a selected drug for the third cycle of negotiations will have until February 28, 2026, to decide if they will participate in negotiations. In negotiations, CMS will consider the selected drug's clinical benefit, evidence about alternative treatments, the extent to which it addresses unmet medical needs, and its impact on specific populations, including people who rely on Medicare. CMS also considers other information, such as costs associated with research and development as well as current costs of production and distribution for selected drugs.

To review the fact sheet on the drugs selected for negotiation and renegotiation, visit: https://www.cms.gov/sites/default/files/2026-01/factsheet-medicare-negotiation-selected-drug-list-ipay-2028.pdf

To review the fact sheet on the list of top 50 negotiation-eligible drugs, visit: https://www.cms.gov/sites/default/files/2026-01/factsheet-medicare-top-50-negotiation-eligible-drug-list-ipay-2028.pdf

For more information about the Medicare Drug Price Negotiation Program, visit: https://www.cms.gov/priorities/medicare-prescription-drug-affordability/overview/medicare-drug-price-negotiation-program

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