On January 17, CMS announced the selection of 15 Medicare Part D drugs for the second cycle of negotiations—initial price applicability (IPAY) 2027. Per statute, CMS will engage in "negotiations" with the primary manufacturers of these 15 selected drugs over the course of 2025. The maximum fair prices established through this process will become effective on January 1, 2027. The drugs are:
| Drug Name | Manufacturer | Commonly Treated Conditions |
| Ozempic; Rybelsus; Wegovy | Novo Nordisk | Type 2 diabetes and cardiovascular disease; Obesity/oversight and cardiovascular disease |
| Trelegy Ellipta | GSK | Asthma; Chronic obstructive pulmonary disease (COPD) |
| Xtandi | Astellas/Pfizer | Prostate cancer |
| Pomalyst | Bristol Myers Squibb | Kaposi sarcoma; Multiple myeloma |
| Ibrance | Pfizer | Breast cancer |
| Ofec | Boehringer Ingelheim | Idiopathic pulmonary fibrosis |
| Linzess | AbbVie | Chronic idiopathic constipation; Irritable bowel syndrome with constipation |
| Calquence | AstraZeneca | Chronic lymphocytic leukemia/small lymphocytic lymphoma; Mantle cell lymphoma |
| Austedo; Austedo XR | Teva Pharmaceuticals | Chorea in Huntington's disease; Tardive dyskinesia |
| Breo Ellipta | GSK | Asthma; COPD |
| Tradjenta | Boehringer Ingelheim | Type 2 diabetes |
| Xifaxan | Salix Pharmaceuticals | Hepatic encephalopathy; Irritable bowel syndrome with diarrhea |
| Vraylar | AbbVie | Bipolar I disorder; Major depressive disorder; Schizophrenia |
| Janumet; Janumet XR | Merck | Type 2 diabetes |
| Otezla | Amgen | Oral ulcers in Behçet's Disease; Plaque psoriasis; Psoriatic arthritis |
Source: CMS. "Medicare Drug Price Negotiation Program: Selected Drugs for IPAY 2027." Link.
Notably, the selection process did not take manufacturer rebates into account, so the actual net costs to the Medicare program for the selected drugs are less than the gross costs CMS used to create the list. According to CMS, "these selected drugs accounted for about $41 billion in total gross covered prescription drug costs under Medicare Part D, or about 14%, between November 2023 and October 2024. When combined with the total gross covered prescription drug costs under Medicare Part D of the 10 drugs selected for the first cycle of negotiations over that same time period, this represents over a third of total gross covered prescription drug costs under Medicare Part D."
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