What CMS announced and when prices would change
In a press release dated January 27, 2026, CMS said it selected 15 high-cost prescription drugs for the third cycle of the Medicare Drug Price Negotiation Program. CMS said negotiations with participating manufacturers will take place during 2026, with any negotiated prices becoming effective January 1, 2028. CMS also selected a previously negotiated drug—Tradjenta—for the program’s first renegotiations.
Which drugs were selected
CMS listed the selected drugs as Anoro Ellipta, Biktarvy, Botox (including Botox Cosmetic), Cimzia, Cosentyx, Entyvio, Erleada, Kisqali, Lenvima, Orencia, Rexulti, Trulicity, Verzenio, Xeljanz (including Xeljanz XR), and Xolair. The agency said the medications are used for a variety of conditions, including cancer and chronic inflammatory diseases, and that the set represents some of the highest spending under Medicare Parts B and D.
How the negotiation program is framed
CMS said it will consider factors including clinical benefit, evidence on alternative treatments, unmet medical needs, and impacts on Medicare populations, along with information related to research and development and production and distribution costs. The agency also noted a participation decision deadline for manufacturers and described the announcement as part of its broader prescription-drug affordability efforts.
Why the decision could affect patients and the market
Medicare’s ability to negotiate prices has become a key lever in U.S. drug-policy debates because it can influence out-of-pocket spending for seniors, federal program costs, and pricing expectations beyond Medicare. The selection of widely used therapies, including a GLP-1 diabetes drug, may draw close attention from insurers, pharmaceutical companies, and patient groups as negotiations unfold through 2026 ahead of the 2028 effective date.