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US Medicare lays out timeline for third round of drug price negotiations

US Medicare lays out timeline for third round of drug price negotiations

Yahoo12-05-2025

(Reuters) -The U.S. Centers for Medicare and Medicaid Services (CMS) said on Monday that it would announce a list of 15 drugs eligible for a third round of Medicare price negotiations by early February next year.
For the first time, the list would include drugs payable under Medicare Part B - which covers medicines administered in a doctor's office or hospital - in addition to prescription drugs covered under Medicare Part D, CMS said.
WHY IT'S IMPORTANT
The drug price negotiation process was established under President Joe Biden's signature Inflation Reduction Act in 2022. The first round included drugs among the most expensive for Medicare insurance plans covering people aged 65 years and older or with disabilities.
After facing criticism from the pharmaceuticals industry, President Donald Trump's administration had previously promised "greater transparency" in the process.
CONTEXT
CMS announced prices for ten drugs in August 2024, in its first round of cuts following a year of talks. The second round, which includes negotiations for 15 drugs such as Novo Nordisk's blockbuster diabetes medicine Ozempic, is currently underway and a final decision on prices is due by November 30, 2025.
Negotiated prices for the third round will take effect on January 1, 2028. Additionally, CMS said it was seeking public comment on various topics to enhance transparency and reduce the administrative burden for participating manufacturers.
Earlier in the day, Trump signed a wide-reaching executive order directing drugmakers to lower their prices to align with what other countries pay, a measure that analysts and legal experts have cautioned will be difficult to implement.

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