CMS reports large savings from new Medicare drug price negotiations

The US Centers  for Medicare and Medicaid Service (CMS) has reported a sharp rise in expected savings after completing its second round of Medicare drug price negotiations, putting a focus on high-spend treatments for cancer and chronic disease. The CMS says it achieved a net reduction of 44%, or $12 billion, across 15 widely used medicines.

The Maximum Fair Prices will apply from January 2027, expanding the negotiated group to 25 drugs when combined with those taking effect in 2026. CMS said the latest group covers therapies for diabetes, asthma, and several cancers, representing some of Medicare Part D’s highest expenditure.

Health and Human Services secretary Robert F Kennedy Jr said the administration would “use every tool” to cut costs for older patients. CMS administrator Mehmet Oz said this year’s outcomes were “substantially better” for taxpayers, while deputy administrator Chris Klomp said the process reflected “serious, fair, and disciplined negotiation.”