Medicare Drug Price Negotiation & Timeline for 2026
What is the Medicare Drug Price Negotiation Program?
In August of 2022, the Inflation Reduction Act (IRA) was signed into law. This new law will assist in lowering health care and prescription drug costs, and has created the Medicare Drug Price Negotiation Program. The program will allow Medicare to negotiate better prescription drug prices, and Medicare has already selected the first ten drugs up for negotiation. For a list of the first round of drugs selected for negotiation, you can read our blog on the topic here. The negotiated maximum fair prices for these drugs will apply beginning in 2026.
October 1, 2023
Deadline for companies of drugs selected for the Negotiation Program to sign agreements to participate in the negotiation process for 2026.
October 2, 2023
Deadline for companies of drugs selected for the Negotiation Program to submit manufacturer-specific data to CMS to consider in the negotiation of maximum fair price.
February 1, 2024
CMS sends initial offers of a maximum fair price with a justification for a selected drug to each company participating in the Negotiation Program. The negotiation period begins.
March 2, 2024
Companies have 30 days from receiving offers of a maximum fair price for a drug to accept the offer or propose a counteroffer, if desired.
August 1, 2024
The negotiation period ends.
September 1, 2024
CMS will publish maximum fair prices for drugs selected for negotiation for 2026.
January 1, 2026
Maximum fair prices are effective for selected drugs.
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