Medicare Drug Price Negotiation Program

Updated July 2026

The Inflation Reduction Act (IRA), signed in 2022, gave Medicare the authority to negotiate the price of its highest-spend prescription drugs for the first time. Through the Medicare Drug Price Negotiation Program, the Centers for Medicare & Medicaid Services (CMS) sets a Maximum Fair Price (MFP) for each selected drug — a ceiling on what Medicare and its beneficiaries pay — phased in over annual cycles beginning in 2026.

The table lists each cycle's drugs and their MFP, sorted by Medicare spending. Those also flagged for a state Prescription Drug Affordability Board (PDAB) review could face a second price control atop the federal one.

Drug Manufacturer Therapeutic Area Medicare Spend MFP MFP Discount PDAB State
Notes

MFP = Medicare Maximum Fair Price, per 30-day supply. MFP Discount is the resulting cut off the drug's list price. Cycle 3 prices and discounts are pending — negotiation concludes in 2027.

Medicare Spend = approximate annual Medicare gross spend on the drug in the CMS drug-selection window ($ billions). CMS selects each cycle's drugs from its highest-spend Part D drugs (Part B added in Cycle 3); the table is sorted by that spend, highest first.

The PDAB State column lists U.S. states whose Prescription Drug Affordability Board is reviewing the drug — a state price control that would layer on top of the federal MFP. PDAB + UPL states can set a binding Upper Payment Limit; PDAB only states review affordability but cannot cap the price.

State board: PDAB + UPL PDAB only
References
CMS — Medicare Drug Price Negotiation Program
KFF — Prescription Drug Provisions in the IRA