Earlier this week, the Centers for Medicare & Medicaid Services (CMS) not only revealed the negotiated prices of the latest high-priced prescription meds under Medicare Part D, but for the first time, those payable under Part B as well.¹

Representing the third cycle of Medicare’s Drug Price Negotiation Program, this time around, CMS chose one negotiated medication from the negotiation program’s first renegotiations.

With the latest round, any negotiations with drug manufacturers who chose to participate will take place this year—if they end up being renegotiated, the new prices will take effect Jan. 1, 2028, and will reflect the maximum fair price (MFP) of each of these drugs.

The most recent announcement advances the Trump Administration’s efforts to rein in prescription drug costs. During the second negotiation cycle, Medicare finalized pricing agreements with manufacturers for all 15 selected drugs, effective Jan. 1, 2027.

If this had been applied in 2024, those prices would have generated an estimated $8.5 billion in net savings, including Coverage Gap Discount Program spending, representing a roughly 36% reduction in overall net prescription drug costs.

“For too long, seniors and taxpayers have paid the price for skyrocketing prescription drug costs,” noted CMS Administrator Mehmet Oz, MD. “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.”

How many Medicare beneficiaries are impacted by the negotiated drugs?

Between November 2024 and October 2025, a press release¹ notes that approximately 1.8 million people under Medicare Part D or Medicare Part B coverage utilized the original 15 drugs that were chosen for the first cycle of negotiations. These were used to combat a multitude of conditions, including cancer, human immunodeficiency virus type 1 infection, and psoriatic arthritis.

The aforementioned drugs comprised about $27 billion in total prescription drug spending under Medicare Part B and Part D, or 6% of total Part B and Part D spending.

Which drugs were selected for the third negotiation cycle?

CMS is also publishing a list of 50 drugs that are eligible for negotiation based on combined spending under Medicare Parts B and D. The drugs that were chosen for the third negotiation cycle are the 15 highest-spending products on that list.

“The publication of the list of top 50 negotiation-eligible drugs evidences CMS’ commitment to transparency,” said Chris Klomp, CMS deputy administrator and director of Medicare. “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 meds for the third round of negotiations is as follows:

1. Anoro Ellipta
2. Biktarvy
3. Botox; Botox Cosmetic
4. Cimzia
5. Cosentyx
6. Entyvio
7. Erleada
8. Kisqali
9. Lenvima
10. Orencia
11. Rexulti
12. Trulicity
13. Verzenio
14. Xeljanz; Xeljanz XR
15. Xolair

Meanwhile, the drug chosen for renegotiation is Tradjenta.

What happens next in the Medicare drug negotiation process?

Those manufacturers who have a chosen drug in the latest round have until Feb. 28, 2026 to decide if they’d like to take part in the negotiations. During this process, CMS will take into account various factors, such as the chosen drug’s clinical benefit, along with its impact on certain populations, including those who depend on Medicare.

How do the agency’s payment proposals affect Medicare Advantage and Part D plans?

Separately, CMS has also proposed a near-flat 0.09% payment increase for Medicare Advantage and Part D plans, or over $700 million in Medicare Advantage payments to plans In 2027.² It expects the proposed policy to result in additional payment accuracy and help provide affordable coverage for beneficiaries.

A final rate announcement is expected on or before April 6, 2026.

References

1. CMS Announces Selection of Drugs for Third Cycle of Medicare Drug Price Negotiation Program, Including First-Ever Part B Drugs. Centers for Medicare & Medicaid Services. January 27, 2026. Accessed January 29, 2026. https://www.cms.gov/newsroom/press-releases/cms-announces-selection-drugs-third-cycle-medicare-drug-price-negotiation-program-including-first

2. CMS Proposes 2027 Medicare Advantage and Part D Payment Policies to Improve Payment Accuracy and Sustainability. Centers for Medicare & Medicaid Services. January 26, 2026. Accessed January 29, 2026. https://www.cms.gov/newsroom/press-releases/cms-proposes-2027-medicare-advantage-part-d-payment-policies-improve-payment-accuracy-sustainability