CMS Announces 15 Drugs for Third Cycle of Medicare Drug Price Negotiation Program

In a news release, the Centers for Medicare & Medicaid Services (CMS) announced a selection of 15 high-cost prescription drugs that are covered under Medicare Part D. For the first time, drugs that are payable under Medicare Part B for the third cycle of the Medicare Drug Price Negotiation Program, the announcement stated.¹

The selected drugs for the third cycle of negotiations include the following¹:

• Anoro Ellipta (umeclidinium/vilanterol; GSK)
• Biktarvy (bictegravir/emtricitabine/tenofovir alafenamide; Gilead Sciences)
• Botox, Botox Cosmetic (onabotulinumtoxinA; Allergan Aesthetics)
• Cimzia (certolizumab pegol; UCB Pharma)
• Cosentyx (secukinumab; Novartis)
• Entyvio (vedolizumab; Takeda Pharmaceuticals)
• Erleada (apalutamide; Janssen Biotech)
• Kisqali (ribociclib; Novartis)
• Lenvima (Lenvatinib mesylate; Eisai Co)
• Orencia (abatacept; Bistol Myers Squibb)
• Rexulti (brexpiprazole; Otsuka Pharmaceutical Co)
• Trulicity (dulaglutide; Eli Lilly)
• Verzenio (abemaciclib; Eli Lilly)
• Xeljanz; Xeljanz XR (tofacitinib; Pfizer)
• Xolair (omalizumab; Genentech, Novartis)

Additionally, Tradjenta (linagliptin; Boehringer Ingelheim) was selected for renegotiation. Negotiations with participating drug companies will occur in 2026, and any negotiated and renegotiated prices will become effective January 1, 2028, according to the news release. The institution announced that a list of 50 top negotiation-eligible drugs based on combined expenditures under Medicare Parts B and D will also be released, and that the drugs selected for the third cycle represent the top 15 highest-spending drugs on the list.¹

“For too long, seniors and taxpayers have paid the price for skyrocketing prescription drug costs,” Mehmet Oz, MD/MBA, CMS Administrator, said in the news release. “Under President Trump’s leadership, CMS is taking strong action to target the most expensive drugs in Medicare, negotiate fair prices, and make sure the system works for patients—not special interests. This approach delivers real savings while strengthening accountability across the program.”¹

What is the Medicare Drug Price Negotiation Program?

Under the Medicare Drug Price Negotiation Program, the Secretary of the US Department of Health and Human Services works directly with pharmaceutical manufacturers to negotiate the prices Medicare will pay for medications. Specifically, these medications include those that account for a large portion of the program’s drug spending. There are specific instructions for Medicare that determine how many drugs should be selected for price negotiations each year, what information should be considered in negotiations, and the timeline for said negotiations.^2,3

In 2023, CMS initiated the first negotiations for 10 drugs covered under Medicare Part D, including commonly prescribed medications such as Januvia (sitagliptin; Merck) for the treatment of type 2 diabetes, Eliquis (apixaban; Bristol Myers Squibb) for blood clots, and Entresto (sacubitril/valsartan; Novartis) for heart failure. In 2024, CMS reached an agreement on “maximum fair prices” for these drugs with the companies that make them.^2,3

The CMS news release reports that around 1.8 million people with Medicare Part D or Medicare Part B coverage used the 15 drugs selected for initial negotiation to treat a variety of conditions, including cancer, psoriatic arthritis, and HIV type 1 infection, between November 2024 and October 2025. These drugs accounted for approximately $27 billion in total prescription drug spending under Medicare Part B and Part D, representing about 6 percent of total Part B and Part D spending.¹

According to the CMS news release, companies with a selected drug for the third cycle of negotiations will have until February 28, 2026, to decide if they will participate in negotiations. In negotiations, CMS will consider the selected drug’s clinical benefit, evidence about alternative treatments, and the extent to which it addresses unmet medical needs, as well as its impact on specific populations (eg, those who rely on Medicare). CMS states that other information—such as costs associated with research and development and current costs of production and distribution for selected drugs—are also taken into consideration.¹

“The publication of the list of top 50 negotiation-eligible drugs evidences CMS’ commitment to transparency,” CMS Deputy Administrator and Director of Medicare Chris Klomp said in the news release. “By applying clear eligibility criteria and practical negotiation policies, we are ensuring the program responds to market changes while delivering fairness and value for the American people.”¹

REFERENCES

1. CMS Newsroom. CMS Announces Selection of Drugs for Third Cycle of Medicare Drug Price Negotiation Program, Including First-Ever Part B Drugs. News release. January 27, 2026. Accessed January 28, 2026. https://www.cms.gov/newsroom/press-releases/cms-announces-selection-drugs-third-cycle-medicare-drug-price-negotiation-program-including-first

2. The Commonwealth Fund. Medicare Drug Price Negotiations: All You Need to Know. May 15, 2025. Accessed January 28, 2026. https://www.commonwealthfund.org/publications/explainer/2025/may/medicare-drug-price-negotiations-all-you-need-know

3. CMS. Selected Drugs and Negotiated Prices. Accessed January 28, 2026. https://www.cms.gov/priorities/medicare-prescription-drug-affordability/overview/medicare-drug-price-negotiation-program/selected-drugs-negotiated-prices