Regulatory NewsBREAK: CMS Releases the Maximum Fair Price (MFP) for Selected Drugs for IPAY 2027
- On November 25, 2025, the Centers for Medicare & Medicaid Services (CMS) released the maximum fair price (MFP) for each of the 15 selected drugs for IPAY 2027, which will go into effect beginning January 1, 2027. These negotiated prices reflect a marked increase in savings compared to the initial 2026 cohort, influenced by newer drugs and expanded pricing benchmarks.
- The average MFP for the 2027 selected drugs represents a 62% discount from 2024 list prices and about a 36% discount compared to statutory ceiling prices under the Inflation Reduction Act. Discounts vary by drug, with some like Ozempic/Wegovy seeing up to 71% off list price.
- CMS incorporated broader data points including Coverage Gap Discount Program payments, manufacturer supply chain concessions, and prior MFPs from the 2026 cohort to inform negotiations, potentially signaling deeper discounts in future years.
- The increased discounts for IPAY 2027 drugs likely reflect the Trump Administration’s policy commitment to achieve greater savings, as outlined in its April 2025 drug pricing Executive Order, contrasting with the Biden Administration’s approach for IPAY 2026.
- The negotiated MFP for Ozempic/Wegovy is slightly higher than a recent White House negotiated price for select Medicare beneficiaries, highlighting ongoing coordination challenges between direct government negotiations and other drug pricing agreements. CMS’s negotiation authority under the Inflation Reduction Act remains a key tool to encourage manufacturer price concessions.
- Furthermore, CMS announced that Entresto, Stelara, and Xarelto will be removed from the Selected Drug List and their maximum fair prices will no longer apply starting January 1, 2027, following the determination that generic or biosimilar versions of these drugs are being marketed; these drugs will remain selected and priced under the program through December 31, 2026.
For questions, please reach out to Vicky Jucelin.
Related
On December 9, 2025, the Food and Drug Administration (FDA) released final guidance on promotional labeling and advertising for prescription biological reference products, biosimilar products, and interchangeable biosimilar products (Final Guidance).
On December 4 and 5, 2025, the Advisory Committee on Immunization Practices (ACIP) met to discuss and vote on the committee’s recommendations for the hepatitis B birth dose and the childhood and adolescent vaccination schedule.
On November 18, 2025, the Food and Drug Administration (FDA) published a final guidance entitled “Patient-Focused Drug Development: Selecting, Developing, or Modifying Fit-for-Purpose Clinical Outcome Assessments” (Final Guidance).
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