The Department of Health and Human Services released final guidance outlining the process for the second cycle of negotiations under the Medicare Drug Price Negotiation Program. In August, the administration announced the negotiated prices for the 10 drugs selected for the first cycle of negotiations. CMS will announce the selection of up to 15 additional drugs covered by Part D for the second cycle of negotiations by February 1, 2025. This second cycle of negotiations with participating drug companies will occur during 2025, and any negotiated prices for this second set of drugs will be effective starting January 1, 2027. The final guidance states that CMS will engage with a Medicare Transaction Facilitator that will serve as the infrastructure in the exchange of data and the optional facilitation of payments.
Drug company utilization of the Medicare Transaction Facilitator for payment facilitation is voluntary. Starting in October, CMS will host monthly technical calls for pharmacies that complement the existing monthly technical calls for Part D plans and drug companies. CMS is currently preparing for Medicare Open Enrollment, which begins on October 15. Fact Sheet: Medicare Drug Price Negotiation Program Final Guidance for 2027 and Manufacturer Effectuation of the MFP in 2026 and 2027 (PDF).