March 6, 2023
As part of the Inflation Reduction Act of 2022, the Department of Health and Human Services (HHS) have announced their plan for negotiating Medicare Part D prescription drug prices.
President Biden signed the Inflation Reduction Act into law in August 2022. This law included numerous aims, such as a promise to make healthcare more affordable. For the first time, Medicare will be able to negotiate the price of prescription drugs. Over the course of 2023, Medicare will negotiate the price of 10 Medicare Part D drugs, with the announcement of final prescription selections to come in September.
The Centers for Medicare and Medicaid Services (CMS) began work on the Medicare Drug Price Negotiation Program in January 2023. This spring, CMS invites the public to comment on the negotiation process during three separate information collection requests (ICRs). Beneficiaries will see the price changes that result from the negotiation process in 2026. Key dates for the program include:
- September 1, 2023: CMS publishes the list of 10 Medicare Part D prescription drugs that have been selected for negotiation.
- August 1, 2024: The negotiation concludes.
- September 1, 2024: CMS publishes the selected price for each of the 10 Medicare Part D drugs.
- January 1, 2026: The negotiated prices go into effect for Medicare beneficiaries.
Read more about Medicare Part D and the Inflation Reduction Act of 2022.
What is Medicare Part D?
Medicare Part D, also known as prescription drug coverage for Medicare beneficiaries, is offered by private insurance plans. You are able to obtain Part D coverage as a standalone plan with Original Medicare or bundled in a Part C Medicare Advantage plan.
