CMS Prepares for Second Round of Medicare Drug Price Negotiation Program

Second Cycle of Negotiations:
The Centers for Medicare & Medicaid Services (CMS) has issued final guidance for the second cycle of negotiations under the Medicare Drug Price Negotiation Program, which will occur during 2025 and may result in negotiated maximum fair prices (MFPs) effective beginning January 1, 2027.

Drug Selection:
CMS will select up to 15 additional drugs covered under Part D for the second cycle of negotiations by February 1, 2025.

Negotiation Process:
The final guidance outlines the process for the second cycle of negotiations, including requirements and parameters for participating drug companies, procedures for ensuring access to negotiated prices, and additional engagement opportunities between CMS and drug companies.

Patient Engagement:
CMS will host up to 15 patient-focused roundtable events and a town hall meeting in Spring 2025 to solicit feedback on clinical considerations related to the selected drugs.

Implementation:
The negotiated prices from the first and second cycles will be effective beginning in 2026 and 2027, respectively, with CMS ensuring that Medicare beneficiaries have access to these prices through various measures, including the use of a Medicare Transaction Facilitator.

Previous Success:
The first cycle of negotiations resulted in lower prices for 10 drugs covered by Part D, with discounts ranging from 38% to 79% off the 30-day supply list prices, potentially saving Medicare an estimated $6 billion.