Medicare Targets 15 High-Profile Drugs In Third Price Negotiation Cycle

by | Jan 28, 2026 | General

The U.S. Centers for Medicare & Medicaid Services (CMS) announced the selection of 15 high-cost prescription drugs for the third cycle of the Medicare Drug Price Negotiation Program, marking the first time the initiative includes drugs reimbursed under Medicare Part B.

CMS said the medications are used to treat conditions including cancer, psoriatic arthritis, and HIV-1 infection.

The agency said negotiations with participating drugmakers will take place in 2026, with any agreed-upon or renegotiated prices scheduled to take effect on January 1, 2028.

CMS also selected one previously negotiated drug for its first renegotiation under the program.

Program Scope Widens Beyond Part D

The move builds on earlier negotiation cycles that focused solely on Medicare Part D drugs, expanding the scope of the program to include physician-administered treatments typically covered under Part B.

The agency framed the announcement as a continuation of efforts launched under President Donald Trump to rein in prescription drug costs for seniors and taxpayers.

During the second negotiation cycle, Medicare reached agreements with manufacturers on all 15 selected drugs, with those prices set to take effect on January 1, 2027.

CMS estimated that if the second-cycle negotiated prices had been in place in 2024, Medicare would have saved about $8.5 billion in net covered prescription drug costs, including spending under the Coverage Gap Discount Program.

That reduction would have translated to approximately 36% lower net spending across the selected drugs.

CMS Leadership Commentary on Cost Containment

“For too long, seniors and taxpayers have paid the price for skyrocketing prescription drug costs,” said Dr. Mehmet Oz, administrator of CMS. He said the agency is targeting the most expensive drugs in Medicare to negotiate fair prices and deliver savings while strengthening accountability across the program.

Between November 2024 and October 2025, about 1.8 million Medicare beneficiaries with Part D or Part B coverage used the 15 drugs selected for initial negotiation.

Those drugs generated roughly $27 billion in total prescription drug spending under Medicare Parts B and D, accounting for about 6% of total spending across both programs, according to the agency.

Alongside the announcement, CMS released a list of 50 negotiation-eligible drugs ranked by combined spending under Parts B and D. The 15 drugs chosen for the third negotiation cycle represent the highest-spending medications 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.

Drugs Selected for the Third Negotiation Cycle

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

  • GSK plc’s (NYSE:GSK) chronic obstructive pulmonary disease drug, Anoro Ellipta (umeclidinium bromide/vilanterol)
  • Gilead Sciences Inc.’s (NASDAQ:GILD) Biktarvy (bictegravir/emtricitabine/tenofovir alafenamide) for HIV infection
  • AbbVie Inc.’s (NYSE:ABBV) Botox; Botox Cosmetic
  • UCB SA’s (OTC:UCBJY) (OTC:UCBJF) Cimzia (certolizumab pegol) for autoimmune diseases.
  • Novartis AG’s (NYSE:NVS) Cosentyx (secukinumab) for psoriasis and arthritis, Kisqali (ribociclib) for advanced breast cancer.
  • Takeda Pharmaceutical Company Ltd’s (NYSE:TAK) Entyvio (vedolizumab) for severe ulcerative colitis (UC) or Crohn’s disease
  • Johnson & Johnson’s (NYSE:JNJ) prostate cancer drug Erleada (apalutamide)
  • Eisai Co. Ltd.’s (OTC:ESALF) (OTC:ESAIY) Lenvima (lenvatinib) for thyroid cancer, hepatocellular carcinoma (liver cancer)
  • Bristol-Myers Squibb Co.’s (NYSE:BMY) Orencia (abatacept) for rheumatoid arthritis
  • Otsuka Holdings Co Ltd.’s (OTC:OTSKF) (OTC:OTSKY) antipsychotic medication, Rexulti (Brexpiprazole).
  • Eli Lilly and Co.’s (NYSE:LLY) Trulicity (dulaglutide) for type 2 diabetes, and Verzenio (abemaciclib) for breast cancer.
  • Pfizer Inc.’s (NYSE:PFE) Xeljanz (tofacitinib) for inflammatory conditions.
  • Roche Holdings AG’s unit Genentech and Novartis partnered Xolair (omalizumab) for severe allergic conditions.

The selected drug for renegotiation is: 

  • Boehringer Ingelheim’s Tradjenta (linagliptin) for type 2 diabetes.

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