HHS Announces Medicare Price Negotiation List

On August 29, the Department of Health and Human Services (HHS) announced for the first time ever ten drugs selected for Medicare price negotiation:

The White House's press release states that Medicare drug price negotiation, made possible by the Inflation Reduction Act, will result in lower out-of-pocket costs for seniors and will save money for American taxpayers.

The drugs on the list accounted for almost $51 billion, or about 20%, of Part D’s prescription drug costs in the year ending May 31, 2023. Negotiations for the first group of selected drugs will begin in 2023, with negotiated prices going into effect in 2026.

In the future, CMS will select for negotiation up to 15 more drugs covered under Part D for 2027, up to 15 more drugs for 2028 (including drugs covered under Part B and Part D), and up to 20 more drugs for each year after that, as outlined in the Inflation Reduction Act.

The release of the list sets up an escalating conflict between the Biden administration and the pharma industry that is suing to block the negotiations from going forward.

For more information:

• View a fact sheet from the Office of the Assistant Secretary for Planning and Evaluation (ASPE) here

• View a CMS fact sheet on the drugs selected for the Medicare Drug Price Negotiation Program here

• Read more on the Medicare Drug Price Negotiation Program here