On August 29, 2023, Health and Human Services (“HHS”) announced the first ten drugs covered by Medicare Part D selected for negotiation under President Biden’s Inflation Reduction Act of 2022 (“IRA”), which was signed into law August 2022.

^{See Medicare Drug Price Negotiation Program: Selected Drugs for Initial Price Applicability Year 2026 at CMS}

Under the framework of the IRA, starting in 2026 for Part D covered drugs, and in 2028 for Part B covered drugs, the IRA will impose a requirement on drug manufacturers to negotiate drug prices with Medicare for selected drugs. By 2031, it is expected that a cumulative total of one hundred Part B and D drugs will be subject to Medicare price negotiation. The list of drugs that will be negotiated are based on Medicare spending amount and are announced two years before the negotiated price goes into effect.