Medicare 2026

Medicare Names 15 Drugs for Its Third Round of Price Negotiation — and Part B Drugs Join the List for 2028

On January 27, 2026, the Centers for Medicare & Medicaid Services (CMS) announced the 15 prescription drugs chosen for the third cycle of the Medicare Drug Price Negotiation Program. This cycle marks a milestone: it is the first time drugs paid for under Medicare Part B are included alongside drugs covered under Part D. Any negotiated prices will take effect January 1, 2028.

The 15 drugs selected

The medicines chosen for prices beginning in 2028 are Anoro Ellipta, Biktarvy, Botox (and Botox Cosmetic), Cimzia, Cosentyx, Entyvio, Erleada, Kisqali, Lenvima, Orencia, Rexulti, Trulicity, Verzenio, Xeljanz (and Xeljanz XR), and Xolair.

CMS says these drugs commonly treat conditions including type 2 diabetes (Trulicity); HIV-1 infection (Biktarvy); psoriatic arthritis (Orencia, Xeljanz, Cimzia, Cosentyx); rheumatoid arthritis (Orencia, Xeljanz, Cimzia); plaque psoriasis (Cosentyx, Cimzia); breast cancer (Kisqali, Verzenio); prostate cancer (Erleada); Crohn's disease (Entyvio, Cimzia); ulcerative colitis (Entyvio, Xeljanz); asthma and chronic spontaneous urticaria (Xolair); COPD (Anoro Ellipta); major depressive disorder, schizophrenia, and agitation associated with dementia due to Alzheimer's disease (Rexulti); chronic migraine, overactive bladder, and spasticity (Botox); and thyroid, endometrial, liver, and kidney cancers (Lenvima). CMS notes this list of conditions is not exhaustive.

Between November 1, 2024 and October 31, 2025, about 1,777,000 people with Medicare Part B and/or Part D used these 15 drugs. Together they accounted for $27.0 billion — roughly 6% — of total Part B and Part D spending in that period. Trulicity alone represented about $4.9 billion and 617,000 users.

CMS also chose Tradjenta, a type 2 diabetes drug originally negotiated for 2027, for the program's first renegotiation. All participating manufacturers signed on by the March 13, 2026 announcement.

What happens next — and when

Under CMS's timeline, the negotiation period ends November 1, 2026. CMS must publish any agreed-upon prices — formally called "maximum fair prices" — by November 30, 2026, with an explanation of those prices by March 1, 2027. Negotiated prices take effect January 1, 2028.

Looking further ahead, CMS must publish the list of drugs for the fourth negotiation cycle by February 1, 2027. That cycle is set at up to 20 drugs and may again include both Part B and Part D medicines. Under the timeline in the June 2026 proposed rule (CMS-4215-P), expected to be finalized in fall 2026, those negotiations would occur during 2027, with prices effective January 1, 2029.

Why adding Part B matters

Most people think of Medicare drug coverage as Part D — the plans that cover medicines you pick up at a pharmacy. But some drugs, especially those administered in a doctor's office or clinic (such as infusions and certain injections), are paid under Part B. Including Part B drugs expands the program's reach.

Starting in 2028, for a selected drug paid under Part B, Medicare's payment limit is set by law at 106% of the negotiated maximum fair price. For Part B drugs under Original Medicare, you generally pay up to 20% of the Medicare-approved amount after meeting the Part B deductible ($283 in 2026). A lower approved amount can translate into a lower 20% share.

What this means for your 2027 choices

The negotiated prices don't take effect until 2028, so your 2027 plan selection won't yet reflect them. Still, Annual Enrollment for 2027 (October 15 – December 7, 2026) is the right time to compare your options.

A few program-level reminders for 2027:

• The Part D out-of-pocket cap rises to $2,400 (up from $2,100 in 2026).
• No Part D plan may charge a deductible higher than $700.
• The Part D base beneficiary premium is $41.33 — a national figure used to calculate the late-enrollment penalty. Actual plan premiums are set plan by plan and vary.
• Social Security announced a 3.6% COLA for benefits payable beginning January 2027.

The 2027 Part B standard premium and deductible, and the IRMAA income brackets, have not yet been announced. CMS typically releases those figures in the fall.

Medicare Advantage vs. Original Medicare + Medigap

Both paths have trade-offs. Original Medicare paired with a stand-alone Part D plan and, often, a Medigap policy offers broad provider access and predictable cost-sharing, but Medigap premiums are a separate monthly cost. Medicare Advantage plans bundle coverage, often include extras, and have an annual out-of-pocket maximum, but typically use networks and prior authorization. The right fit depends on your doctors, medicines, budget, and preferences — not on any ranking.

If you have Medicaid or Extra Help

Since 2025, people with Medicaid or Extra Help have a monthly Special Enrollment Period to move to Original Medicare with a stand-alone Part D plan, or to switch stand-alone Part D plans. Full-benefit dual-eligible individuals may also join an integrated D-SNP in any month.

Where to learn more

For official details on the Drug Price Negotiation Program, Part D rules, and plan comparisons in your area, visit Medicare.gov or call 1-800-MEDICARE (TTY 1-877-486-2048), available 24/7.