The First-Ever Government Negotiation Process For Drugs Has Finished, But The Politics Are Ongoing – 2

On August 15, 2024, the Centers for Medicare & Medicaid Services (CMS) announced negotiated prices for the first 10 drugs selected under Medicare’s new Drug Price Negotiation Program, established by the Inflation Reduction Act of 2022. This announcement marked the end of a months-long negotiation process between CMS and the manufacturers of these 10 drugs, with new prices taking effect for Medicare beneficiaries on January 1, 2026.

With the conclusion of the first round of price negotiation, the Biden-Harris Administration can take credit for delivering on a 2020 campaign promise to give CMS the power to negotiate drug prices, with the ultimate goal of achieving savings for people with Medicare and for the Medicare program. And the...