The Inflation Reduction Act (IRA) of 2022 created the Medicare Drug Price Negotiation (DPN) Program in an effort to decrease the of cost of medications through Medicare. As a result of this program, the Centers for Medicare & Medicaid Services (CMS), select specific highly utilized, single source brand name medications for negotiation of price with the drug’s manufacturer. In August of 2024 CMS announced the first 10 drugs that would be selected for negotiation with their new price effective 1/1/2026. Unfortunately, it seems with the exceptions of oncology medications and certain biologics, the negotiations will actually result in little cost savings to the federal government, either because the negotiated prices are not significantly improved than net prices after rebates and discounts, or because generic or biosimilar competitors are expected in those drug categories by 2026.
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