CMS Issues the List of Selected Drugs for Initial Price Applicability Year 2027

CMS Issues the List of Selected Drugs for Initial Price Applicability Year 2027

• On January 17, 2025, the Centers for Medicare & Medicaid Services (CMS) issued the list of 15 additional Part D drugs for the Medicare Drug Price Negotiation Program. 
• The drugs selected for this negotiation are: 
  • Ozempic or Rybelsus or Wegovy; 
  • Trelegy Ellipta; 
  • Xtandi; 
  • Pomalyst; 
  • Ibrance; 
  • Ofev; 
  • Linzess; 
  • Calquence; 
  • Austedo or Austedo XR; 
  • Breo Ellipta; 
  • Tradjenta; 
  • Xifaxan; 
  • Vraylar; 
  • Janumet or Janumet XR; and 
  • Otezla.
• The new prices will go into effect on January 1, 2027. 
• Four drugs qualified for the small biotech exception. 
• These selected drugs accounted for about $40.7 billion in total gross covered Part D prescription drug costs, or about 14% of total gross covered Part D prescription drug costs, between November 2023 and October 2024. 
• For 2028, CMS will select up to 15 more drugs covered by Part B or Part D and up to 20 more Part B or Part D drugs for each year after that. 

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