HHS Announces Medicare Drug Price Negotiation Program Deadlines

Under the Inflation Reduction Act, Medicare will be able to negotiate prescription drug prices beginning in 2023. The US Department of Health and Human Services (HHS) recently published key dates to implementation. 

The Centers for Medicare & Medicaid Services is anticipated to publish the first 10 Medicare Part D drugs selected for the program by September 1, 2023. For these 10 drugs, negotiated fair maximum prices will be announced September 1, 2024, and adjusted pricing will go into effect January 1, 2026.

Subsequent negotiation for an additional 15 Part D drugs will be for 2027, followed by 15 more Part B or Part D drugs for 2028, and 20 more Part B or Part D drugs for each year thereafter, in accordance with the Inflation Reduction Act. 

CMS also published a memo, describing opportunities for engagement and public feedback during the ongoing implementation process. 

“Public feedback is critical to our ability to successfully implement this law and ensure access to innovative, affordable therapies and treatments,” said Meena Seshamani, MD, PhD, CMS Deputy Administrator and Director of the Center for Medicare. “Through this detailed timeline, we offer stakeholders the predictability they need to contribute to our implementation efforts.”

HHS Secretary Xavier Becerra said in a press release HHS’ plan is to be “transparent and aggressive in implementation every step of the way.”

 “CMS has an ambitious and important mandate to implement the Inflation Reduction Act’s Medicare Drug Price Negotiation Program effectively and expeditiously,” echoed CMS Administrator Chiquita Brooks-LaSure.

The Inflation Reduction Act has a number of provisions already in effect including the following:

• no-cost vaccinations for those with Medicare prescription drug coverage;
• a monthly cost-sharing cap for insulin at $35;
• a crackdown on manufacturer rebates to Medicare;
• increased eligibility for ACA Marketplace coverage; and
• increasing access, boosting competition for biosimilars.

“Thanks to the Inflation Reduction Act, we finally have the authority to get American families the lower prescription drug costs they deserve,” said Mr Becerra. 

Reference: 
US Department of Health and Human Services. HHS Announces Key Dates for the First Year of the Inflation Reduction Act’s Medicare Drug Price Negotiation Program. January 11, 2023. Accessed January 12, 2023. https://www.hhs.gov/about/news/2023/01/11/hhs-announces-key-dates-first-year-inflation-reduction-acts-medicare-drug-price-negotiation-program.html