Federal News
CMS Announces Medicare Drug Price Negotiation Participation
March 14, 2026
The Centers for Medicare & Medicaid Services (CMS) has confirmed that manufacturers of all 15 drugs selected for the third cycle of the Medicare Drug Price Negotiation Program have agreed to participate. This program targets high-expenditure, single-source drugs to negotiate lower prices, with the negotiated prices set to take effect starting in 2028. This development signals a continued federal effort to reduce Medicare drug costs through direct price negotiations with pharmaceutical manufacturers.
- Why this matters: Procurement professionals and contractors in the pharmaceutical and healthcare sectors should anticipate changes in pricing structures for Medicare-covered drugs beginning in 2028.
- Manufacturers participating in this program may face new pricing and supply requirements impacting contract negotiations and procurement planning.
- Organizations involved in Medicare drug supply chains should evaluate the implications of negotiated prices on budgeting, forecasting, and contract compliance.
- This initiative reflects ongoing federal policy emphasis on cost containment in healthcare procurement, potentially influencing future procurement strategies and vendor engagement.
Agencies
Centers for Medicare & Medicaid Services
Vendors
GlaxoSmithKline Intellectual Property Development Ltd. England, Gilead Sciences Inc, AbbVie Inc., UCB, Inc., Novartis Pharmaceuticals Corporation