Part D Price Negotiation Round One: Several Likely Candidates May Not Feel The Cut

Heavily rebated drugs may already be meeting the price goals established by the Senate legislation. As a result, price negotiation for drugs covered under Part B are likely to yield greater savings to the Medicare program than Part D.

Drugs Chosen For First Round Of Negotiation To Be Announced In a Year • Source: Shutterstock

Some Medicare Part D-covered drugs that appear to be candidates for the initial round of federal government price negotiation under pending legislation may already have net prices (after rebates) that are below the maximum average manufacturer prices set by the bill. So in the end, they may not be subject to further price cuts.

Implementation of price discounts mandated by the Health and Human Services Department in a process described as “negotiation” is scheduled to begin in 2026 for drugs covered by Medicare Part D under legislation that passed the Senate on 7 August. The bill is expected to be considered by the House in the coming days

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