CMS SELECTS 15 MEDICATIONS FOR SECOND ROUND
In a significant expansion of efforts to control healthcare costs, the Centers for Medicare & Medicaid Services (CMS) has identified 15 prescription medications for the second round of its Medicare Drug Price Negotiation Program. This initiative aims to substantially reduce pharmaceutical expenses for Medicare beneficiaries across the country.
The selected medications include widely prescribed drugs such as Ozempic, Wegovy, Trelegy Ellipta, Xtandi, Pomalyst, Ibrance, Ofev, Linzess, and Calquence. Other medications in this negotiation round include Austedo, Breo Ellipta, Tradjenta, Xifaxan, Vraylar, and Otezla.
AGREEMENTS SIGNED WITH MANUFACTURERS
On March 14, CMS announced it had successfully secured agreements with pharmaceutical manufacturers to participate in the negotiation process. These companies will engage in a series of meetings and roundtables throughout 2025, working toward establishing maximum fair prices for all 15 medications.
The negotiation timeline has been clearly established, with final agreements due by November 1, 2025. This structured approach ensures transparency and accountability throughout the process, with implementation of new pricing scheduled for 2027.
POLITICAL SUPPORT ACROSS LEADERSHIP
Notably, Dr. Mehmet Oz, President Donald Trump’s nominee for CMS administrator, has publicly committed to upholding the drug negotiation program. During his March 14 testimony before the Senate Finance Committee, Dr. Oz stated unequivocally: “It’s the law. I’m going to defend it and use it.”
Dr. Oz further emphasized that price negotiations represent one component of a multi-faceted approach his administration would pursue to address rising pharmaceutical costs in the Medicare program.
SIGNIFICANT FINANCIAL IMPACT EXPECTED
The financial implications of these negotiations are substantial. According to CMS data, the 15 selected medications account for approximately $41 billion in total Medicare Part D spending between November 2023 and October 2024—representing roughly 14% of all Medicare Part D prescription drug expenditures.
When implemented in 2027, the negotiated prices are expected to deliver considerable savings for both the Medicare program and its beneficiaries, particularly those who rely on these medications for chronic conditions.
BUILDING ON PREVIOUS SUCCESS
This second round of negotiations builds upon the success of the initial negotiation cycle, which already secured price reductions for 10 different medications. Those first-round price adjustments are scheduled to take effect in 2026, one year before the second-round reductions are implemented.
CMS projections indicate that if the new prices from the first negotiation round had been applied in 2023, Medicare beneficiaries would have saved approximately $6 billion in drug costs—highlighting the program’s potential for delivering substantial cost relief to seniors and other Medicare participants.
As the negotiation process moves forward, healthcare advocates and policymakers will be closely monitoring developments to ensure the program achieves its intended goals of improving medication affordability while maintaining access to essential treatments for Medicare beneficiaries.
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