CMS Releases First Round of Medicare Price Negotiation

What Does This Mean for Your Financial Forecasts?

On August 15, 2024, the Centers for Medicare and Medicaid Services announced results from the first cycle of negotiations associated with the Medicare Drug Price Negotiation Program. The published maximum fair prices (MFP) for the ten drugs selected will first become applicable January 1, 2026, and represent a discount of 38 to 79 percent off list price.

BRG professionals have led pharmaceutical manufacturers through the evaluation and assessment of potential financial impact associated with each drug-pricing provision within the Inflation Reduction Act (IRA). If you are interested in learning more about how this will change with the recently released MFP values, BRG can help.