CMS Issues the List of Selected Drugs for Initial Price Applicability Year 2027

Topic(s):

Legislation & Regulation , Payment Systems

CMS Issues the List of Selected Drugs for Initial Price Applicability Year 2027

On January 17, 2025, the Centers for Medicare & Medicaid Services (CMS) issued the list of 15 additional Part D drugs for the Medicare Drug Price Negotiation Program.
The drugs selected for this negotiation are:
- Ozempic or Rybelsus or Wegovy;
- Trelegy Ellipta;
- Xtandi;
- Pomalyst;
- Ibrance;
- Ofev;
- Linzess;
- Calquence;
- Austedo or Austedo XR;
- Breo Ellipta;
- Tradjenta;
- Xifaxan;
- Vraylar;
- Janumet or Janumet XR; and
- Otezla.
The new prices will go into effect on January 1, 2027.
Four drugs qualified for the small biotech exception.
These selected drugs accounted for about $40.7 billion in total gross covered Part D prescription drug costs, or about 14% of total gross covered Part D prescription drug costs, between November 2023 and October 2024.
For 2028, CMS will select up to 15 more drugs covered by Part B or Part D and up to 20 more Part B or Part D drugs for each year after that.

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