As of January 1, 2026, the first negotiated prices from the Medicare Drug Price Negotiation Program (MDPNP) are officially in effect! This marks a historic shift in how Medicare manages drug costs under the Inflation Reduction Act.
We recently sat down with Ann Johnson, Pharm.D., President of Pharmacy Health Solutions, LLC, to break down the latest expansions and what they mean for the industry.
Key Highlights from the Update:
- First 10 Drugs Live: Negotiated prices for the initial 10 Part D drugs (announced in 2023) are now active as of January 1, 2026.
- Expansion to Part B: Starting with the 2028 Initial Price Applicability Year (IPAY), the program now includes Part B drugs (physician-administered) alongside Part D. CMS announced 15 new drugs for negotiation this January.
- Orphan Drug Changes: The orphan drug exclusion has been updated. Drugs with multiple orphan designations still qualify for exclusion as long as they have no approved non-orphan indications.
- Renegotiation Rights: CMS now has the option to renegotiate prices for previously selected drugs if there are new indications, material changes, or shifts in Part B utilization.
- Market Reality: While projected savings are high, actual savings may be influenced by new biosimilar launches and voluntary manufacturer price reductions.
Members can learn more about the data and policy shifts by viewing the recorded webcast.
Want to Present?
Use the button below to submit an ASAP Insights webcast topic and speaker suggestion.