Lower Negotiated Prices for 15 Life-Saving Medications
CMS Maximum Fair Prices Take Effect for Cycle Two Drugs
Starting January 1, 2027, federally negotiated prices take effect for 15 high-cost brand-name Part D medications. This milestone represents the second cycle of direct negotiations conducted by the Centers for Medicare & Medicaid Services.
These 15 medications join the initial group of 10 drugs whose negotiated prices launched in 2026. The program targets widely used medications that lack generic competition and account for billions in federal spending.
Enrollees will experience significant pharmacy savings on several key treatments. For example, Xifaxan, an gastrointestinal therapy used to treat irritable bowel syndrome and liver disease, drops 63% to $1,000 for a 30-day supply.
The 2027 negotiation list also includes Ozempic, prescribed for type 2 diabetes management, and Trelegy Ellipta, used for chronic lung conditions. Lower negotiated prices reduce your coinsurance payments and preserve your annual drug budget longer.
Check your plan formulary during open enrollment to confirm where your insurer places these 15 medications. Plans must cover negotiated drugs, but tier placement dictates your specific copay or coinsurance amount.
