CMS: Medicare Drug Price Negotiation is Here to Stay

June 15, 2026

CMS is looking to make the Medicare Drug Price Negotiation Program permanent through a new proposed rule.

Released last week, the rule would create a permanent framework for the program. The program, established via the 2022 Inflation Reduction Act, would transition from a federal guidance to a federal regulation.

“We are moving from annual updates to a permanent, predictable framework,” said Dr. Mehmet Oz, CMS administrator. “This approach puts patients first, strengthens Medicare, and protects the innovation pipeline that delivers future cures.”

Here are a few key takeaways:

• About:  CMS will pick 20 additional negotiation-eligible drugs covered under Part D or Part B for the fourth cycle of negotiations starting in 2029 and beyond.
• Biotech carve out:  CMS also proposes a temporary price floor for small biotech drugs to support “continued innovation while maintaining fairness for small biotech companies.” The exception is a provision of the Inflation Reduction Act.
• Back to the table:   The law also outlines when drugs are eligible for renegotiation after 2029.
• Time for comment:  The public comment period closes on August 17.
• Quotable:  “This rule builds on that foundation by establishing clear, consistent rules of the road—giving patients, plans, pharmacies, and drug manufacturers the certainty they need as we continue to drive down costs,” said Chris Klomp, director of Medicare and chief counselor of the U.S. Department of Health and Human Services.

A CMS fact sheet and press release are available online.