Medicare Is Negotiating Prices on Cancer and Specialty Drugs Given in Clinics for the First Time

When CMS announced the 15 drugs selected for the third cycle of Medicare drug price negotiations in January 2026, it included a historic first: drugs covered under Medicare Part B were included alongside traditional Part D pharmacy drugs, marking the broadest application of the negotiation program since it launched under the Inflation Reduction Act.

Part D covers medications patients fill at a pharmacy. Part B covers drugs administered in a clinical setting, such as cancer treatments given by infusion, injections given by a physician, or biologics applied in an outpatient clinic. Patients receiving Part B drugs typically pay 20 percent of the Medicare-approved amount out of pocket with no annual cap, which can translate into substantial costs for high-price therapies.

The 15 drugs selected for the third cycle accounted for roughly 27 billion dollars in combined Medicare Part B and Part D spending in a recent 12-month period, and about 1.8 million Medicare beneficiaries used at least one of the 15 drugs, according to CMS. On March 13, 2026, CMS announced that all manufacturers of the selected drugs chose to participate in the negotiations.

Negotiations are ongoing through October 31, 2026. If CMS and a manufacturer of a Part B drug reach agreement, the resulting maximum fair price would take effect January 1, 2028. Beneficiaries would pay 20 percent of that lower price at the point of care, which could meaningfully reduce out-of-pocket costs for people receiving high-cost infused treatments.