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CMS Proposes Permanent Framework for Medicare Drug Price Negotiation Program

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The Centers for Medicare & Medicaid Services on Friday proposed a rule to establish a permanent regulatory framework for the Medicare Drug Price Negotiation Program beginning with the 2029 price applicability year, transitioning from implementation through annual guidance to codified regulations.

The proposal would govern future negotiations and renegotiations for high-cost, single-source drugs covered under Medicare Part D and Part B. CMS said it will select up to 20 additional negotiation-eligible drugs for the fourth cycle of negotiations and future cycles of the program.

The rule also proposes a temporary pricing floor for certain small biotech drugs in 2029 and 2030.

CMS said it has negotiated prices for 25 high-expenditure drugs during the program's first two years. Maximum fair prices for the first 10 selected drugs took effect Jan. 1, 2026.

Price: $236.56, Change: $-4.31, Percent Change: -1.79%

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