CMS Announces Selected Drugs for 2027 Maximum Fair Price Negotiations; New Administration Issues Executive Order Affecting the IRA – Then Clarifies

Lexology February 13, 2025
Ankura

The Centers for Medicare and Medicaid Services (CMS) recently announced the second cohort of Medicare Part D drugs selected for Maximum Fair Price negotiation (MFP) as part of the enhanced drug pricing authority granted to CMS by Congress through the Inflation Reduction Act (IRA). The MFPs for the 15 selected drugs will be determined over the next several months pursuant to the regulatory process established by CMS. MFPs for the current cohort will take effect on January 1, 2027, the initial price applicability year (IPAY) for these medicines. According to CMS, products were selected based on total gross covered prescription drug costs under Medicare Part D among other criteria set forth in the IRA.¹

The new cohort reflects an increase...

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