Medicare Starts Bargaining for Cheaper Wonder Drugs
Published Date: 11/28/2025
Notice
Summary
Starting in 2026, Medicare will negotiate lower prices for some expensive drugs to help save money for patients and the government. This new rule affects drug makers, who must follow price limits through 2028, including a first-ever renegotiation cycle. These changes aim to make medicines more affordable while protecting certain special drugs, with clear deadlines and rules set by CMS.
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
Medicare drug price negotiations 2026–2028
If you have Medicare, CMS will negotiate lower maximum fair prices for certain high‑cost, single‑source drugs starting in 2026. The final guidance covers manufacturer effectuation of those maximum fair prices in 2026, 2027, and 2028 and implements the Initial Price Applicability Year (IPAY) 2028 from January 1, 2028 to December 31, 2028; CMS also notes expanded protections for orphan drugs under the July 4, 2025 law change.
Personalized for You
How does this regulation affect your finances?
Personalize government policy and PRIA will tell you what this federal register document means for your household, plus every other regulation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Key Dates
Department and Agencies
Related Federal Register Documents
2026-20281, Global Benchmark for Efficient Drug Pricing (GLOBE) Model
Starting November 30, 2026, Medicare will use the new GLOBE Model to help lower the cost of certain drugs for people on Original Medicare. This model changes how drug price increases are calculated, aiming to save money for both patients and the Medicare program without cutting care quality. If you’re on Medicare Part B, expect smarter drug pricing that helps keep your healthcare affordable.
2026-20131, Medicare Program; Inpatient Rehabilitation Facility Prospective Payment System for Federal Fiscal Year 2027 and Updates to the IRF Quality Reporting Program; Correction
This correction fixes some technical mistakes in the Medicare payment rules for inpatient rehab facilities starting October 1, 2026. It mainly affects hospitals and rehab centers by clarifying how wage data and payments are calculated, ensuring fairer payment rates for fiscal year 2027. No big changes in money, but it keeps everything accurate and on track.
2026-19959, Medicare Program; Prospective Payment System and Consolidated Billing for Skilled Nursing Facilities; Updates to the Quality Reporting Program for Federal Fiscal Year 2027; Correction
This correction fixes some technical mistakes in Medicare payment rules for skilled nursing facilities starting October 1, 2026. It mainly affects how hospital data is used to calculate payments, making sure no current hospitals are wrongly excluded. These tweaks help keep Medicare payments fair and accurate for providers and patients.
2026-20067, Medicare Program; FY 2027 Hospice Wage Index and Payment Rate Update and Hospice Quality Reporting Program Requirements; Correction
This correction fixes some technical mistakes in the FY 2027 hospice payment and wage index rules that were first published in August 2026. It mainly affects hospice providers by updating how their payments are calculated, making sure the numbers are accurate starting October 1, 2026. These changes help ensure hospices get the right payment amounts based on the latest hospital wage data.
2026-19946, Medicare Program; Hospital Inpatient Prospective Payment Systems for Acute Care Hospitals (IPPS) and the Long-Term Care Hospital Prospective Payment System and Policy Changes and Fiscal Year (FY) 2027 Rates; Requirements for Quality Programs; Other Policy Changes; and Adoption of Updated Versions of Certain Health Information Technology Standards; Correction
This update fixes some typos and technical mistakes in the Medicare payment rules for hospitals starting October 1, 2026. It affects hospitals getting paid for patient care, making sure the payment system and quality programs run smoothly. These corrections help hospitals get the right payments and follow updated health tech standards without delays or confusion.
2026-15686, Medicare Program; FY 2027 Hospice Wage Index and Payment Rate Update and Hospice Quality Reporting Program Requirements
This final rule updates the hospice wage index, payment rates, and aggregate cap amount for fiscal year 2027. This final rule also includes an analysis of Medicare non-hospice spending, including details regarding a hospice service and spending variation index, and finalizes the requirement that hospices provide the hospice election statement addendum to all Medicare beneficiaries at the time of hospice election. Additionally, this rule finalizes conforming changes to discharge from hospice care regulations and changes to the face-to-face encounter regulations. This final rule also includes a summary of comments received on our requests for information regarding community- based palliative care; the construction of a hospice specific wage index; and the overlap between hospice and medical aid in dying laws. Finally, this rule finalizes changes to the Hospice Quality Reporting Program.
Previous / Next Documents
Previous: 2025-21500, Renewals of Information Collections Under the Paperwork Reduction Act
The National Indian Gaming Commission is renewing several important paperwork rules that affect Indian gaming operations, like contracts, fees, licenses, and technical standards. They’re asking the public to share thoughts by December 29, 2025, before the government decides to approve or change these rules. These renewals keep the gaming world running smoothly without adding extra costs or delays.
Next: 2025-21502, Center for Scientific Review; Notice of Closed Meetings
The NIH’s Center for Scientific Review is holding a closed virtual meeting on December 18-19, 2025, to review important grant applications about infectious diseases. This meeting was delayed due to a government shutdown but is now urgent to keep vital health research funding on track. Scientists and researchers waiting on NIH grants will be affected by this quick rescheduling.