Trump Administration Announces 15 Drugs for Medicare Price Negotiation Program
The Donald Trump administration revealed on Tuesday that it has selected 15 new medications for inclusion in the Medicare Drug Price Negotiation Program. This initiative targets drugs used to treat serious conditions such as cancer, diabetes, HIV, and arthritis, with the potential to save American taxpayers and seniors billions of dollars once revised prices are implemented.
Addressing Skyrocketing Prescription Costs
Centers for Medicare & Medicaid Services (CMS) administrator Dr. Mehmet Oz emphasized the urgency of this action. "For too long, seniors and taxpayers have paid the price for skyrocketing prescription drug costs," he stated. "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."
This announcement is part of broader efforts by the Trump administration to reduce prescription drug expenses for Americans. The newly negotiated prices for this third list of drugs are expected to take effect from January 1, 2028, following negotiations scheduled for 2026.
Phased Implementation of Drug Price Negotiations
The Medicare Drug Price Negotiation Program is being rolled out in multiple phases:
- First Phase: Negotiated prices for the initial 10 drugs will become effective on January 1, 2026.
- Second Phase: Prices for 15 drugs selected in the second phase have been negotiated and will take effect from January 1, 2027.
- Third Phase: The latest announcement covers 15 drugs for which negotiations will occur in 2026, with prices effective from January 1, 2028.
List of Drugs Selected for Third Phase Negotiations
The 15 drugs chosen for the third cycle of negotiations include:
- Anoro Ellipta: A daily inhaler for Chronic Obstructive Pulmonary Disease (COPD).
- Biktarvy: A once-daily pill for HIV-1 infection.
- Botox; Botox Cosmetic: An injection for chronic migraines, muscle spasms, overactive bladder, and cosmetic uses.
- Cimzia: An injection for autoimmune conditions like Crohn’s disease, rheumatoid arthritis, and psoriasis.
- Cosentyx: An injectable biologic for plaque psoriasis and psoriatic arthritis.
- Entyvio: An IV or injection specifically for ulcerative colitis and Crohn’s disease.
- Erleada: An oral medication for prostate cancer.
- Kisqali: A targeted therapy pill for hormone-receptor-positive breast cancer.
- Lenvima: An oral medication for thyroid, kidney, and liver cancers.
- Orencia: An infusion or injection to reduce symptoms of rheumatoid arthritis.
- Rexulti: An oral medication for depression, schizophrenia, and agitation associated with Alzheimer’s dementia.
- Trulicity: A weekly injection for type 2 diabetes and reducing heart disease risk.
- Verzenio: An oral medication for certain types of breast cancer.
- Xeljanz; Xeljanz XR: An oral pill for rheumatoid arthritis and ulcerative colitis.
- Xolair: An injection for allergic asthma, chronic hives, and food allergies.
Additionally, the diabetes medication Tradjenta has been selected for re-negotiation of prices.
Impact and Expenditure Data
CMS reported that between November 1, 2024, and October 31, 2025, the drugs under consideration for price negotiation in this cycle were used by approximately 1,777,000 individuals with Medicare Part B and/or Part D coverage. During this period, these selected drugs accounted for a staggering $27 billion in expenditures under Medicare Part B and Part D, representing about 6% of total expenditures under these plans.
Key expenditure and usage figures include:
- Trulicity: $4.9 billion in expenditures, used by 617,000 enrollees.
- Biktarvy: $3.9 billion in expenditures, used by 101,000 enrollees.
- Orencia: $2.5 billion in expenditures, used by 72,000 enrollees.
- Cosentyx: $2.3 billion in expenditures, used by 40,000 enrollees.
- Erleada: $1.9 billion in expenditures, used by 19,000 enrollees.
Timeline for Third Phase Negotiations
CMS has outlined a detailed timeline for the third cycle of drug price negotiations:
- February 28, 2026: Deadline for drug companies to sign participation agreements.
- March 1, 2026: Deadline for submitting manufacturer-specific data to CMS.
- April 2026: CMS will host public engagement sessions focused on patients and clinical aspects.
- June 1, 2026: CMS to send initial offers with justifications to drug companies.
- June 2026: Optional negotiation meetings offered to companies.
- July 1, 2026: Deadline for companies to accept initial offers or propose counteroffers.
- September 11, 2026: Last day for negotiation meetings.
- September 18, 2026: Last date for exchanging additional written offers or counteroffers.
- September 30, 2026: Deadline for CMS to send final offers if no agreement reached earlier.
- October 31, 2026: Deadline for companies to accept or reject final offers.
- November 1, 2026: End of negotiation and renegotiation period.
- November 30, 2026: Deadline for CMS to publish any agreed-upon maximum fair prices (MFPs).
- March 1, 2027: Deadline for CMS to publish explanations of agreed-upon MFPs.
- January 1, 2028: Effective date for any agreed-upon MFPs from this cycle.
This structured approach aims to ensure transparency and fairness in the negotiation process, ultimately benefiting millions of Medicare enrollees by making essential medications more affordable.
