Trump Administration Unveils 15 New Drugs for Medicare Price Negotiation Programme
The Trump administration has announced the selection of 15 new drugs for inclusion in a Medicare drug price negotiation programme, a move that empowers the federal government to haggle directly with pharmaceutical manufacturers. This initiative, revealed on Tuesday 28 January 2026, targets medications that treat conditions such as Type 2 diabetes, HIV, and arthritis, among others.
Targeting High-Cost Medications for Significant Savings
The drugs chosen include some of the most expensive medications on which Medicare spends substantial funds. This strategic selection means that the negotiations conducted this year have the potential to yield considerable savings for taxpayers once the new prices take effect in 2028.
Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz emphasised the urgency of this action in a statement on Tuesday. "For too long, seniors and taxpayers have paid the price for skyrocketing prescription drug costs," he said. "Under President Trump's leadership, CMS is taking strong action to target the most expensive drugs in Medicare, negotiate fair prices, and make sure the system works for patients — not special interests."
Expanding the Negotiation Programme Under Existing Law
The federal government met its deadline of 1 February to announce the list of 15 drugs. These negotiations are conducted under a 2022 law that permits Medicare to bargain over the prices of the most popular and costly prescription drugs used by older Americans. This year marks the third round of the programme, bringing the total number of drugs with negotiated lower prices to 40 for Medicare enrollees.
A notable development in this round is the first-time eligibility of drugs payable under Medicare Part B, which covers outpatient prescriptions like medications infused or injected at a doctor's office. Retail prescription drugs under Medicare Part D remain eligible, as in previous years.
Key Drugs and Their Impact on Medicare Enrollees
The newly announced drugs for negotiation feature prominent names such as the Type 2 diabetes treatment Trulicity and the HIV medication Biktarvy. Additionally, the neurotoxin Botox will have its price negotiated, but only for Medicare-covered uses like treating migraines or overactive bladders, not for cosmetic purposes.
Other selected drugs include treatments for:
- Psoriasis
- Ulcerative colitis
- Chronic lung disease
- Depression
- Various cancers
According to the Trump administration, approximately 1.8 million Medicare Part B or Part D enrollees used these 15 drugs over the past year, accounting for about 6% of total spending in these programmes. CMS also noted that Tradjenta, a Type 2 diabetes drug previously negotiated, will undergo renegotiation this year.
Mixed Reactions from Stakeholders
AARP CEO Dr. Myechia Minter-Jordan praised the announcement as a "significant step forward." In a statement, she highlighted that "older Americans across the political spectrum consistently say that lowering drug prices is a top priority, and we thank the Administration for protecting Medicare's ability to meet that need."
Conversely, the pharmaceutical industry's leading trade association criticised the underlying law, the Inflation Reduction Act. PhRMA Executive Vice President of Policy and Research Elizabeth Carpenter argued in a statement that "the IRA continues to show why government price setting is the wrong approach for Americans," suggesting policymakers should focus on reining in insurers and pharmacy benefit managers instead.
Context and Future Implications
This announcement follows CMS's November revelation of negotiated drug prices for 15 drugs set to take effect in 2027. Reduced prices for the first 10 drugs negotiated by the Biden administration in 2024 have already been implemented at the start of this year.
The full list of medications to be negotiated this year includes:
- Anoro Ellipta
- Biktarvy
- Botox and Botox Cosmetic
- Cimzia
- Cosentyx
- Entyvio
- Erleada
- Kisqali
- Lenvima
- Orencia
- Rexulti
- Trulicity
- Verzenio
- Xeljanz and Xeljanz XR
- Xolair
This ongoing programme underscores a concerted effort to address rising healthcare costs and enhance affordability for millions of Americans reliant on Medicare for their prescription needs.
