The Centers for Medicare and Medicaid Services announced the third cycle of Medicare drug price negotiations. Fifteen new Part D and Part B drugs have been selected, with negotiated prices to take effect in 2028. [1]

The program's track record is now measurable. The first ten drugs — negotiated under the Inflation Reduction Act's original mandate — saw their new prices take effect in January 2026. CMS reports that nine million Medicare enrollees are saving a combined $1.5 billion per year in out-of-pocket costs on those drugs alone. Fiasp and NovoLog, the insulin products, produced the most visible savings. [2]

The second round of fifteen drugs entered active negotiation earlier this year, with manufacturers signing participation agreements. The third round expands the program's reach further into specialty medications covering both pharmacy-dispensed and physician-administered drugs.

The pharmaceutical industry has not accepted the framework quietly. Multiple manufacturers have filed legal challenges against CMS, arguing the negotiation structure amounts to price coercion. Courts have consistently ruled against the industry so far.

For the nine million enrollees already paying less, the legal arguments are academic. The co-pay at the pharmacy counter dropped. That is the number that matters at the kitchen table.

-- Kenji Nakamura, Tokyo