August 2024 Legislative & Regulatory Briefing — HHS Unveils the Maximum Fair Price for the First 10 Drugs Selected for Medicare Negotiation

HHS Unveils the Maximum Fair Price for the First 10 Drugs Selected for Medicare Negotiation  

Last week, the Biden-Harris administration unveiled the long-awaited Maximum Fair Prices for the first ten drugs selected for Medicare Price Negotiation. The new prices will go into effect for Medicare beneficiaries on Jan. 1, 2026, while HHS will publish a list of the next 15 Part D drugs selected for negotiation for the initial price applicability year 2027 by Feb. 1, 2026. Under the Inflation Reduction Act, HHS will also publish justification for the prices of the first ten negotiated drugs by March 1, 2025. The first drugs selected for negotiation account for $56.2 billion in total Medicare spending, or roughly 20 percent of total Part D gross spending, in 2023.

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