In its third round of negotiating prices for select Medicare drugs, the Centers for Medicare and Medicaid (CMS) has selected 15 medications whose prices will go into effect January 1, 2028. The medications are used to treat conditions like cancer, HIV, psoriatic arthritis, and stomach conditions like Crohn’s disease.  

The two previous price negotiations with drug manufacturers resulted in lower prices on drugs used to treat diabetes, blood clots, chronic obstructive pulmonary disease, heart disease, and a host of other chronic conditions. So far, 25 medications’ costs have dropped by at least 38%, with many upwards of 50% for Medicare beneficiaries. CMS has noted that these initial two negotiations could save hundreds of millions on out-of-pocket drug costs for consumers. 

Medicare Part B drug negotiation

This is the first time the list of drugs being negotiated by CMS will include Part B drugs. Part B medications are provided in a doctor’s office or hospital outpatient clinic and include injections and infusions for conditions like cancer, arthritis, and asthma. 

Though spending is higher on Part D drugs, CMS included Part B in this round because these are often high-cost drugs that don’t have a generic alternative. The Inflation Reduction Act of 2022 also requires Part B drugs be part of the negotiations. 

The Medicare drug price negotiation list 2028

CMS chooses the list of medications based on several things, including which drugs are most used and their high cost to Medicare and consumers. According to CMS, in 2025, more than 1.7 million Medicare beneficiaries will use the drugs from the 2028 list at a cost to Medicare of about $27 billion.

The list of drugs for 2028 includes:

There are two things to note about this year’s price negotiations. First, Botox price negotiations only include its use for health conditions like migraines and overactive bladder. Botox should cost less with Medicare, but not for cosmetic use. 

Second, Tradjenta, given for Type 2 diabetes, is the first drug to be renegotiated. Tradjenta automatically triggered a renegotiation through the Inflation Reduction Act because its status changed this year to what’s known as a long-monopoly drug. This means that it’s been at least 16 years since it was approved by the U.S. Food and Drug Administration. 

Lowering drug costs

Drug price negotiations may help many Medicare patients lower their out-of-pocket prescription drug costs. This year’s price changes won’t go into effect until 2028, but the first round of negotiated prices has been implemented. The Inflation Reduction Act also provided other cost-saving measures, like capping out-of-pocket Part D medication expenses at $2,100 a year, reducing the copayment of insulin to $35 a month, and providing recommended vaccines at no cost. 

One good way to save money now on prescription medications is to review your Part D plan each year to see if it is the best suited to your needs. If you have questions about your plan, reach out to SmartMatch to discuss your options.