Inflation Reduction Act: Predicted List of Selected Drugs for the Medicare Price Negotiation Program for 2027

The Inflation Reduction Act (IRA) of 2022 established the Medicare Drug Price Negotiation (DPN) Program as part of its aim to lower prescription drug prices. In August 2023, the U.S. Department of Health and Human Services (HHS), via the Centers for Medicare and Medicaid Services (CMS), announced the first 10 drugs covered under Medicare Part D selected for negotiation. The negotiated prices (i.e. maximum fair prices) for the first 10 selected drugs are expected to take effect on January 1, 2026, for eligible Medicare Part D beneficiaries.

IPD has released a new report predicting the 15 drugs likely to be selected for Medicare price negotiation for 2027 under the Inflation Reduction Act. This analysis, based on Medicare Part D spending data and third-party sales information, highlights drugs with substantial expenditures, including Ozempic, Trelegy Ellipta, and Xtandi, among others. With the drug list announcement expected by February 2025, stakeholders should be anticipating potential impacts on pricing and access as they make plans in the new year.