Health Care · Report · File No. 261108-376
Trump's Medicare agency makes permanent the drug price talks no Republican voted for
Medicare's new rule writes the 2022 drug price negotiation program into permanent federal regulation, starting with prices that take effect in 2029. Republicans in Congress voted against that program, and it saves seniors money on some of their most expensive prescriptions.
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On Nov. 5, the Centers for Medicare & Medicaid Services (CMS), the federal agency that runs Medicare, issued a final rule that makes the Medicare Drug Price Negotiation Program permanent. The rule covers prices that take effect in 2029 and later years 12. It takes effect Dec. 5, 2026 25.
Medicare got the power to negotiate drug prices from the Inflation Reduction Act, which President Joe Biden signed in 2022 7. The House passed that law 220-207 on Aug. 12, 2022, with every Democrat voting yes. Republicans were "uniformly opposed," and the Senate passed it without a single Republican vote 10.
Now President Trump's Medicare agency is making the program permanent, and its chief is presenting it as the president's own priority.
President Trump directed us to lower drug costs for Americans using every tool at our disposal.
What the rule does
The 2022 law let CMS run the first three rounds of negotiation, covering 2026 through 2028, through agency guidance instead of formal regulations. That authority is running out, so CMS is writing the program into federal regulation for 2029 and beyond 2.
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By Feb. 1, 2027, CMS will pick up to 20 more drugs for the fourth round. The list can include drugs from Part D, Medicare's pharmacy drug coverage, and Part B, which covers drugs given in a doctor's office or clinic. CMS may also pick drugs whose earlier deals will be renegotiated 1. Earlier rounds covered 10 drugs for 2026, 15 for 2027, and 15 for 2028, plus one renegotiated drug 3.
The rule also locks in two protections for people at the pharmacy counter. Part D plans must cover drugs that have a negotiated price, and what plans pay pharmacies for those drugs is capped at the negotiated price plus dispensing fees 12.
Closing a loophole, despite pushback
The most disputed part of the rule deals with a drugmaker tactic. A company can add an ingredient to an existing drug so it can be given a new way, such as a quick shot under the skin instead of an IV infusion. That can get the product treated as a brand-new medicine 2.
Under the final rule, CMS will treat those versions as the same drug when the same company makes both 2. CMS's example shows why that matters: without the policy, a newer version might not be picked for negotiation until 2039 instead of 2029 3.
In a Sept. 21 letter, more than 50 lawmakers from both parties asked CMS administrator Mehmet Oz to drop the policy. They warned it would hurt incentives to develop better cancer treatments 7. Signers included Republican Reps. John Joyce and Darin LaHood and Democratic Reps. Jim Costa and Donald Davis 7. CMS kept the policy anyway 1.
The rule also gives some drugs a break. For 2029 and 2030, certain drugs from small biotech companies get a temporary price floor of 66% of an inflation-adjusted 2021 price benchmark 3. CMS also updated how it handles rare-disease drugs to reflect changes made by a 2025 budget law, which CMS calls the "Working Families Tax Cut" legislation 2. Rep. Frank Pallone (D-N.J.) has said that law opened gaps that let drugmakers avoid or delay negotiation 12.
What negotiation has already saved
The first negotiated prices, for 10 drugs including the blood thinner Eliquis and the diabetes drug Jardiance, took effect Jan. 1, 2026 11. Pallone estimated those prices would save seniors about $1.5 billion in out-of-pocket costs in 2026 alone 8.
Medicare drug price negotiation is a major victory for American consumers.
On Jan. 1, 2027, negotiated prices for 15 more drugs take effect. They include Ozempic, Wegovy, Trelegy Ellipta, Xtandi and Ibrance 11. CMS said that if those prices had been in effect in 2024, Medicare would have saved about $12 billion, and patients would have saved $685 million out of pocket 9. Ozempic, Rybelsus and Wegovy will cost Medicare $274 for a 30-day supply, a 71% discount off the list price 9.
None of this lowers anyone's copay this winter. As one analysis of the rule put it, "Nothing in it changes a copay this winter" 4. CMS gave no estimate of what the rule itself will save 4.
What comes next
That matters because the program now faces a new Congress. Democrats won control of both chambers on Nov. 3 and take over the Senate in January 6. Pallone wants more drugs covered by negotiation, and Sen. Ron Wyden (D-Ore.), the incoming chair of the Senate Finance Committee, plans to investigate the administration's private deals with drugmakers 6.
Those deals are separate from negotiation. Under them, drugmakers give Medicaid discounts, and "In exchange, the drugmakers are exempt from mandatory price cuts in Medicare and granted relief from hefty tariffs," Bloomberg Law reported 6. The White House says 26 agreements will save $600 billion over 10 years. The deals expire when Trump's term ends, and critics question how much they really save 6.
It seems to be a policy that has nine lives, with key lawmakers in both parties interested.
The pattern is that a program Republicans voted against in 2022 has become one the Trump administration wants credit for. It is now set to outlast the deals the White House prefers to promote 1610.
The Record
- The House passes the Inflation Reduction Act 220-207, with Republicans uniformly opposed. The law lets Medicare negotiate some drug prices 10.
- CMS announces negotiated prices for 15 drugs taking effect in 2027, saying they would have saved Medicare about $12 billion in 2024 9.
- The first negotiated prices, for 10 drugs including Eliquis and Jardiance, take effect 118.
- More than 50 lawmakers from both parties urge CMS to drop its policy on combination drugs 7.
- CMS issues a final rule making negotiation permanent for 2029 and beyond and keeps the combination-drug policy 12.
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Sources
- CMS, “CMS Final Rule Strengthens, Supports Lasting Drug Savings” (2026-11-05). cms.gov/newsroom/press-releases/cms-final-rule-strengthens-s
- CMS, “Medicare Drug Price Negotiation Program and Medicare Prescription Drug Benefit Program Final Rule (CMS-4215-F) fact sheet” (2026-11-05). cms.gov/newsroom/fact-sheets/medicare-drug-price-negotiation
- Pharmaceutical Commerce, “How CMS' Final Negotiation Rule Treats New Drug Formulations” (2026-11-06). pharmaceuticalcommerce.com/view/how-cms-final-negotiation-ru
- Jolt Journal, “Medicare Drug Price Negotiation Final Rule: What Changes” (2026-11-07). joltjournal.com/finance/medicare-drug-price-negotiation-rule
- American Hospital Association, “CMS finalizes rule to codify Medicare Drug Price Negotiation Program” (2026-11-05). aha.org/news/headline/2026-11-05-cms-finalizes-rule-codify-m
- Bloomberg Law, “Democrats' Victory Tees Up Focus on Trump's Big Pharma Deals” (2026-11-05). news.bloomberglaw.com/health-law-and-business/democrats-vict
- Fox News, “Trump CMS faces bipartisan pushback over Medicare proposal tied to Biden-era drug pricing law” (2026-09-28). foxnews.com/politics/trump-cms-faces-bipartisan-pushback-ove
- House Energy and Commerce Democrats, “Pallone: Negotiated Medicare Prescription Drug Prices Go Into Effect January 1st” (2025-12-30). democrats-energycommerce.house.gov/media/press-releases/pall
- Managed Healthcare Executive, “CMS negotiates a 70% discount for Ozempic and Wegovy” (2025-11-26). managedhealthcareexecutive.com/view/cms-negotiates-a-70-disc
- ABC News / Good Morning America, “Democrats pass health, climate and tax bill along party lines” (2022-08-12). goodmorningamerica.com/news/story/democrats-pass-health-clim
- CMS, “Selected Drugs and Negotiated Prices” (2026-11-05). cms.gov/initiatives/medicare-prescription-drug-affordability
- House Energy and Commerce Democrats, “Pallone Statement on Medicare Drug Price Negotiation Announcement” (2025-11-25). democrats-energycommerce.house.gov/media/press-releases/pall
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