On November 25, 2025, the Centers for Medicare & Medicaid Services (CMS) announced lower costs for 15 drugs used to treat cancer and other chronic diseases. With these cuts, your clients with Medicare Part B and Part D will see lower prescription drug costs!
Effective January 1, 2027, the Maximum Fair Prices (MFPs) for the next 15 Medicare-negotiated drugs brings the total number of negotiated drugs to 25.
2027 Maximum Fair Prices for Medicare-Negotiated Drugs
Source: CMS.gov
If a drug remains in the Medicare Drug Price Negotiation Program, a discount will apply. For every year a drug remains in the program, CMS will adjust the price by the annual percentage increase in the Consumer Price Index for all urban consumers. The cost may also include any other updates based on renegotiations between CMS and drug manufacturers.
Do Manufacturers Have to Participate in the Medicare Drug Price Negotiation Program?
No. The participation of drug companies in the program is voluntary.
However, participating manufacturers are required to ensure the negotiated price is made available to eligible individuals, pharmacies, mail-order services, and other entities that dispense the selected drug.
The Future of Medicare Drug Price Negotiations
The Inflation Reduction Act of 2022 gave CMS the power to negotiate on some of the highest spending drugs. Since then, prescriptions have become more affordable for Medicare beneficiaries. Because 10 drugs were already negotiated for 2026, the lower prices of drugs should be a continuing trend!
CMS published their draft guidance on 2028 Medicare drug price negotiations this past September.
With the total of negotiated drugs now up to 25, CMS will negotiate up to an additional 15 Part B or D drugs for 2028 in 2026. Then, they’ll negotiate up to an additional 15 Part B or D drugs every year after.
With more savings expected in the years to come, Part D beneficiaries are in for a much-needed money reprieve!
With more MFPs coming, beneficiaries will be saving more every year! As an insurance agent, you can use this knowledge to keep your clients in the know as well.
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