CMSRELEASESINITIAL GUIDANCEFORMEDICAREDRUGPRICENEGOTIATION

The Centers for Medicare & Medicaid Services (CMS) has released initial guidance detailing the requirements and parameters for the new Medicare Drug Price Negotiation Program. This program was established through President Biden's Inflation Reduction Act (IRA) to enable Medicare to negotiate lower prescription drug prices for the first time. The negotiation process will consider clinical benefit, unmet medical need, and impact on Medicare beneficiaries The program will result in lower prices for selected high-cost drugs, effective January 2026

CMSis seeking public comment on several key elements of the program, with a deadline of April 14, 2023 In addition, the Inflation Reduction Act has established the Medicare Prescription Drug Inflation Rebate Program, which will lower prescription drug costs for some Medicare beneficiaries starting April 1, 2023.

Inflation Reduction Act Tamps Down on Prescription Drug Price Increases Above Inflation | CMS