The Centers for Medicare and Medicaid Services (CMS) recently announced it has selected 15 additional high-cost drugs for price negotiations between Medicare and drug manufacturers. This marks the third round of negotiations and the first round to include drugs commonly administered during in-office visits or outpatient settings.
This is the first round of drug selections announced by the Trump administration, exercising its authority under the Inflation Reduction Act of 2022. Two previous rounds of negotiation included only drugs covered by Medicare Part D, the portion of Medicare that provides prescription drug coverage. The first round of negotiations included 10 drugs and resulted in new prices that went into effect January 1 of this year. The second round included 15 drugs, with negotiated prices for them set to take effect January 1, 2027.
The drugs chosen for the third round of negotiations include some Medicare Part D drugs and some Medicare Part B drugs, or drugs administered in doctors’ offices and other outpatient settings. The drugs are:
- Anoro Ellipta, used to treat chronic obstructive pulmonary disease and asthma.
- Biktarvy, used to treat human immunodeficiency virus, or HIV.
- Botox and Botox Cosmetic, often associated with cosmetic use but also used to treat medical conditions such as chronic migraines and muscle spasticity.
- Cimzia, used to treat Crohn’s disease.
- Cosentyx, used to treat psoriasis.
- Entyvio, used to treat inflammatory bowel disease.
- Erleada, used to treat prostate cancer.
- Kisqali, used to treat breast cancer.
- Lenvima, used to treat several kinds of cancer.
- Orencia, used to treat arthritis.
- Rexulti, used to treat major depressive disorder, schizophrenia, and agitation associated with dementia due to Alzheimer’s disease.
- Trulicity, a glucagon-like peptide-1 receptor agonist, or GLP-1 drug, used to treat diabetes.
- Verzenio, used to treat breast cancer.
- Xeljanz and Xeljanz XR, used to treat arthritis.
- Xolair, used to treat asthma.
CMS also selected Tradjenta, a diabetes medication included in a previous round, for renegotiation.
According to CMS, approximately 1.8 million Medicare beneficiaries use these drugs, accounting for nearly $27 billion in Medicare Part B and Part D spending between November 2024 and October 2025.
Drug manufacturers will have until February 28 to decide whether to participate in negotiations. In a news release, CMS stated that in negotiations the agency will “consider the selected drug’s clinical benefit, evidence about alternative treatments, the extent to which it addresses unmet medical needs, and its impact on specific populations, including people who rely on Medicare,” as well as costs associated with research and development, production, and distribution.
