The Department of Health and Human Services (HHS) is moving forward with drug price negotiations affordable to the Centers for Medicare and Medicaid Services (CMS) under the Inflation Reduction Act.
It is the first time Medicare will have the ability to negotiate drug prices, and HHS will announce a list of 10 prescription drugs that the agency plans to negotiate the prices of on Sept. 1. CMS previously announced it would release which drugs it plans to negotiate within Medicare Part D sometime in 2023. CMS and HHS will announce the negotiated prices of the 10 drugs in September 2024, with the prices going into effect Jan. 1, 2026.
CMS will select another 15 Part D drugs for price negotiations in 2027, another 15 Part B or Part D drugs for 2028, as well as 20 more Part B or Part D drugs for each year after that, as outlined in the Inflation Reduction Act.
“CMS has an ambitious and important mandate to implement the Inflation Reduction Act’s Medicare Drug Price Negotiation Program effectively and expeditiously,” CMS Administrator Chiquita Brooks-LaSure said in a statement. “We cannot do this important work alone and will engage with the public early and often. We are proactively seeking feedback and insights from a broad range of interested parties throughout implementation of this historic law.”
CMS and HHS have also asked for stakeholders to provide feedback as the agencies work to implement the directives of the Inflation Reduction Act. The law was signed by President Biden in summer 2022 and included several healthcare provisions in addition to enabling Medicare to negotiate drug prices for certain prescription medications.
“Public feedback is critical to our ability to successfully implement this law and ensure access to innovative, affordable therapies and treatments,” Meena Seshamani, MD, PhD, CMS deputy administrator and director of the Center for Medicare, said in a statement. “Through this detailed timeline, we offer stakeholders the predictability they need to contribute to our implementation efforts. We want the public to know when and how they can make their voices heard on forthcoming policies.”
Beyond negotiating drug prices, the Inflation Reduction Act capped monthly insulin costs at $35 for Medicare beneficiaries, capped pharmacy costs at $2,000 annually for Medicare Part D prescription drug plans and extended Affordable Care Act subsidiaries, which enabled more Americans to afford health insurance during the COVID-19 pandemic.
Democrats in Congress have long-pushed for CMS to have the power to negotiate drug prices with pharmaceutical companies. However, the move has been opposed by the pharma industry, which has argued that enabling price negotiations will affect how much pharma companies invest in research and development, which will in turn slow innovation.
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."