CMS Expands Medicare Drug Price Negotiations to 25 Medications

The Centers for Medicare & Medicaid Services (CMS) announced a significant expansion of Medicare drug price negotiations, resulting in a 44% net savings estimated at $12 billion on 15 widely used medications for cancer and chronic diseases. These new Maximum Fair Prices (MFPs) for the second batch of 15 drugs will be implemented on January 1, 2027. Combined with the earlier negotiated 10 drugs effective January 1, 2026, this brings the total to 25 drugs with price controls aimed at reducing Medicare spending on high-cost medications for severe conditions such as cancer, diabetes, and asthma.