January 17, 2023
HHS Announces Key Dates for Implementation of Medicare Drug Price Negotiation
The U.S. Department of Health and Human Services (HHS) has announced key 2023 dates for the Medicare Drug Price Negotiation Program which lowers drug costs for millions of Americans.
For the first time in history, because of the Inflation Reduction Act, Medicare will have the ability to negotiate prescription drug prices. That process begins this year, and the first negotiated prices will go into effect in 2026.
By September 1, 2023, the Centers for Medicare and Medicaid Services will publish the first 10 Medicare Part D drugs selected for the Medicare Drug Price Negotiation Program. The negotiated maximum fair prices for these drugs will be announced by September 1, 2024 and prices will be in effect starting January 1, 2026.
Other major provisions of the Inflation Reduction Act took effect on January 1, including:
- Insulin co-pays are capped at $35 per month for Medicare beneficiaries;
- All recommended adult vaccines are free for Medicare beneficiaries;
- Corporations that raise the price of drugs sold to Medicare faster than the rate of inflation must pay rebates back to Medicare
“Relief from skyrocketing drug prices has finally begun,” said Joseph Peters, Jr., Secretary-Treasurer of the Alliance. “Millions of seniors will be paying less for important drugs this year, with more relief to come.”