The Centers for Medicare & Medicaid Services announced a new slate of prescription drugs that will enter the next round of Medicare price negotiations, a major step in the federal program aimed at lowering costs for beneficiaries. CMS said the third cycle will cover 15 high-spending drugs and, for the first time, will include drugs payable under Medicare Part B as well as Part D medicines.
Among the selected medications are Botox (and Botox Cosmetic, for covered medical uses) and the GLP-1 diabetes treatment Trulicity. The list also includes drugs used for conditions ranging from cancer to autoimmune disease and HIV, reflecting CMS’s focus on high-cost products that drive significant Medicare spending.
CMS said negotiations with participating manufacturers will occur during 2026, and that any negotiated prices will become effective January 1, 2028. The agency also said it selected one previously negotiated drug for the program’s first renegotiations, the type 2 diabetes medication Tradjenta, signaling that the framework is evolving beyond one-time price setting.
The announcement builds on prior cycles authorized under the Inflation Reduction Act, with CMS describing earlier rounds as delivering savings and setting expectations that the program will keep targeting the biggest Medicare drug expenditures. For patients, the policy’s promise is straightforward: lower prices on widely used, expensive therapies, with the biggest impact expected once negotiated prices take effect.
Drugmakers and industry groups have criticized the negotiation authority as government price setting, while patient advocates and consumer groups have argued that Medicare’s purchasing power should be used to bring down costs that have climbed for years. As 2026 negotiations begin, the political and legal disputes will likely continue, but the practical timeline is set: the drug list is public, talks occur this year, and beneficiaries could see the new negotiated prices starting in 2028.