Guidance issued for Medicare drug price negotiations under IRA

Implementation is moving forward on President Joe Biden’s Inflation Reduction Act (IRA) policy that allows Medicare to negotiate lower prescription drug prices.

The US Department of Health and Human Services (HHS), through the Centers for Medicare and Medicaid Services (CMS), has issued initial guidance detailing the requirements and parameters - including requests for public comment - on key elements of the new Medicare Drug Price Negotiation Program for 2026, the first year the negotiated prices will apply.

This guidance explains how Medicare intends to use its new authority to effectively negotiate with drug companies for lower prices on selected high-cost therapies.