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Tuesday's announcement is part of the Trump administration's efforts to reduce prescription drug costs for Americans, with new prices for the current list of drugs expected to take effect from 1 January 2028 following negotiations this year.
The Donald Trump administration on Tuesday announced that 15 new drugs, including those for cancer, diabetes, HIV, and arthritis, had been chosen for the Medicare Drug Price Negotiation Program, a move that could save Americans billions of dollars when revised prices go into effect.
"For too long, seniors and taxpayers have paid the price for skyrocketing prescription drug costs," Centers for Medicare & Medicaid Services (CMS) administrator Dr Mehmet Oz said.
"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," he added.
Tuesday's announcement is part of the Trump administration's efforts to reduce prescription drug costs for Americans, with new prices for the current list of drugs expected to take effect from 1 January 2028 following negotiations this year.
Two phases have already been completed, with negotiated prices for the first 10 drugs coming into effect on 1 January 2026. While prices for 15 drugs selected in the second phase have also been negotiated, the price change will become effective from 1 January 2027.
Which drugs have been selected for price negotiations in the third phase?
For the third list, negotiations for which will go on in 2026, 15 drugs have been selected.
The selected drugs for the third cycle of negotiations are:
- Anoro Ellipta: A daily inhaler used to treat Chronic Obstructive Pulmonary Disease (COPD).
- Biktarvy: A once-daily pill used to treat HIV-1 infection.
- Botox; Botox Cosmetic: An injection used to treat chronic migraines, muscle spasms, and overactive bladder (also has cosmetic uses).
- Cimzia: An injection used to treat autoimmune conditions like Crohn’s disease, rheumatoid arthritis, and psoriasis.
- Cosentyx: An injectable biologic used to treat plaque psoriasis and psoriatic arthritis.
- Entyvio: An IV or injection used specifically to treat ulcerative colitis and Crohn’s disease.
- Erleada: An oral medication used to treat prostate cancer.
- Kisqali: A targeted therapy pill used to treat hormone-receptor-positive breast cancer.
- Lenvima: An oral medication used to treat thyroid, kidney, and liver cancers.
- Orencia: An infusion or injection used to reduce symptoms of rheumatoid arthritis.
- Rexulti: An oral medication for depression, schizophrenia, and agitation associated with Alzheimer’s dementia.
- Trulicity: A weekly injection used to treat type 2 diabetes and reduce the risk of heart disease.
- Verzenio: An oral medication used to treat certain types of breast cancer.
- Xeljanz; Xeljanz XR: An oral pill used to treat rheumatoid arthritis and ulcerative colitis.
- Xolair: An injection used to treat allergic asthma, chronic hives, and food allergies.
CMS said that between 1 November 2024 and 31 October 2025, drugs being considered for price negotiation in this present cycle were used by as many as 1,777,000 people with Medicare Part B and/or Part D coverage.
CMS also said that the selected drugs, in the aforementioned period, accounted for a whopping $27 billion in expenditures under Medicare Part B and Part D, about 6% of total expenditures under these plans.
| Anoro Ellipta | $812,772,000 | 281,000 |
| Biktarvy | $3,904,486,000 | 101,000 |
| Botox; Botox Cosmetic* | $1,143,070,000 | 390,000 |
| Cimzia | $786,790,000 | 38,000 |
| Cosentyx | $2,327,442,000 | 40,000 |
| Entyvio | $1,483,348,000 | 37,000 |
| Erleada | $1,947,504,000 | 19,000 |
| Kisqali | $1,578,679,000 | 17,000 |
| Lenvima | $1,088,498,000 | 10,000 |
| Orencia | $2,450,065,000 | 72,000 |
| Rexulti | $1,075,274,000 | 119,000 |
| Trulicity | $4,898,378,000 | 617,000 |
| Verzenio | $1,428,714,000 | 15,000 |
| Xeljanz; Xeljanz XR | $1,013,332,000 | 22,000 |
| Xolair | $1,077,271,000 | 40,000 |
The table below details the listed drugs, number of users, and respective expenditures.
In addition, diabetes medication Tradjenta has also been also been picked for re-negotiation of prices.
Timeline for drug price negotiation
Having announced the names of 15 drugs for the third cycle, CMS has also announced a timeline to be followed for this round of negotiations.
- 28 February 2026: Deadline for participating drug companies to sign agreements to participate in negotiations.
- 1 March 2026: Deadline for participating drug companies to submit manufacturer-specific data to CMS for consideration in the negotiation of an MFP.
- April 2026: CMS will host patient-focused and clinical-focused public engagement sessions.
- 1 June 2026: Deadline for CMS to send an initial offer of an MFP for a selected drug with a concise justification to each drug company taking part in negotiations.
- June 2026: CMS will offer each participating drug company one optional negotiation meeting.
- 1 July 2026: Deadline for participating drug companies to accept CMS’ initial offer or propose a statutory written counteroffer if desired. Counteroffers will be discussed over the entire course of summer 2026.
- 11 September 2026: Last day for negotiation meetings to take place.
- 18 September 2026: Last date by which CMS and participating drug companies can exchange additional written offers or counteroffers.
- 30 September 2026: Deadline for CMS to send a final MFP offer to participating drug companies if the agreement was not reached earlier.
- 31 October 2026: Deadline for participating drug companies to accept or reject a final MFP offer from CMS.
- 1 November 2026: End of negotiation and renegotiation period.
- 30 November 2026: Deadline for CMS to publish any agreed-upon MFPs resulting from negotiations and renegotiation.
- 1 March 2027: Deadline for CMS to publish an explanation of any agreed-upon MFPs resulting from the initial price applicability year 2028 negotiation and renegotiation process.
- 1 January 2028: Any agreed-upon MFPs negotiated for selected drugs from this cycle of negotiations and drugs selected for renegotiation become effective.
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