Overview

• The Department of Health and Human Services has made initial offers to drug manufacturers for the first 10 prescription drugs selected for Medicare's price negotiation program.
• Negotiations are a key step in the Inflation Reduction Act's efforts to reduce prescription drug costs for Medicare beneficiaries.
• The negotiation process is set to conclude by August, with agreed prices taking effect in January 2026.
• Drug companies are currently engaged in litigation against the administration, challenging the negotiation program.
• The initiative is expected to save money for Medicare beneficiaries and taxpayers, and may influence drug prices beyond Medicare.