# CMS Establishes Medicare Drug Negotiation Framework

CMS issued a final rule establishing a permanent framework for the Medicare Drug Price Negotiation Program. CMS will select up to 20 additional Part D and/or Part B drugs by February 1, 2027, with negotiated prices taking effect beginning in 2029. The rule also addresses renegotiation, small-biotech price floors, and Part D formulary and payment requirements. It announces no contract or solicitation, but it may affect manufacturers, plans, and firms that support Medicare drug-benefit operations.

- Companies providing drug-pricing, benefits administration, formulary, or payment support can assess how the rule’s provisions may affect their services and clients’ operations.
- **Key deadline:** CMS plans to select the additional drugs by February 1, 2027; negotiated prices begin in 2029. These dates provide planning milestones for organizations supporting affected manufacturers and plans.
- Procurement teams should distinguish this regulatory development from a contracting opportunity: the announcement identifies no solicitation, award, or contract value.

**Jurisdictions:** federal
**Industries:** Healthcare
**Topics:** Regulatory Compliance
**Published:** November 07, 2026

### Government Entities
- Centers for Medicare & Medicaid Services (CMS)

### Key Quotes
> This rule provides additional tools to help CMS negotiate better deals, achieve greater savings for taxpayers and beneficiaries, and improve health outcomes for seniors who rely on the Medicare Prescription Drug Program.
> — Mehmet Oz, CMS Administrator

### Sources
- [CMS Final Rule Strengthens Supports Lasting Drug Savings | CMS](https://www.cms.gov/newsroom/press-releases/cms-final-rule-strengthens-supports-lasting-drug-savings) - CMS