US Government Announces Third Round of Medicare Drug Price Negotiations
The US government revealed 15 drugs for Medicare price negotiations starting in 2028. This marks the third round under the Inflation Reduction Act, impacting $27 billion in spending.
Insights:
The US government announced on January 27, 2026, the third round of 15 drugs selected for Medicare price negotiations to commence in 2028 under the Inflation Reduction Act of 2022. This initiative expands the government's authority to negotiate drug prices for the Medicare program, a significant policy move affecting major pharmaceutical products.
The selected drugs include Gilead Sciences Inc's Biktarvy, an HIV treatment; Pfizer Inc's Xeljanz, used for arthritis; Novartis AG's Cosentyx and Kisqali, treating psoriasis and breast cancer respectively; AbbVie Inc's Botox; and Eli Lilly and Company's Trulicity, a GLP-1 diabetes drug. Products from Johnson & Johnson and Bristol Myers Squibb Company are also included in this round. Collectively, these drugs accounted for $27 billion in Medicare spending for the 12 months ending October 31, 2025.
