Drug prices & Part D
Medicare Sent Its Final Drug Price Offers by September 30. Manufacturers Now Have Until October 31 to Respond.
With the statutory September 30 written-offer deadline now passed, each manufacturer whose drug is in Medicare's third negotiation cycle must accept or reject CMS's maximum fair price offer in writing by October 31, closing the formal negotiation period.
By the Goodsurance editorial teamOctober 1, 2026
The Centers for Medicare and Medicaid Services met the statutory September 30, 2026, deadline to send final maximum fair price written offers to the manufacturers of all 15 drugs selected for the third cycle of Medicare drug price negotiations. Each manufacturer must now accept or reject the offer in writing by October 31, 2026.
The 15 drugs span a range of conditions, including HIV, rheumatoid arthritis, inflammatory bowel disease, prostate cancer, breast cancer, and diabetes. Several of the selected drugs are covered under Medicare Part D, meaning patients pick them up at a pharmacy. Others are Part B drugs administered by a clinician in a doctor's office or infusion center, making this the first negotiation cycle to include physician-administered medicines.
CMS met its September 30 deadline to send final price offers on 15 drugs. Manufacturers have until October 31 to respond. If accepted, prices take effect January 2028.
If a manufacturer accepts the offer, the negotiated price becomes the maximum fair price effective January 1, 2028. If a manufacturer rejects it, CMS sets the maximum fair price unilaterally. Drug companies that then refuse to comply face an excise tax under the Inflation Reduction Act.
All 15 manufacturers had agreed in March 2026 to participate in the negotiation process. Face-to-face talks ran through September 11, and both sides could exchange written counteroffers through September 18 before CMS sent its final offer. October 31 is the last date manufacturers may formally respond, after which the negotiation period closes on November 1.
Negotiated prices from earlier cycles already reduced out-of-pocket costs for certain Medicare enrollees, with first-cycle prices having taken effect January 1, 2026.
In plain words
Medicare has been negotiating prices for 15 prescription drugs this year. By September 30, the government sent its final price offer to each drug company. The drug companies now have until October 31 to say yes or no. If they say yes, the new lower prices will take effect January 1, 2028. If they say no, the government still sets the price. These 15 drugs treat conditions like HIV, arthritis, cancer, and diabetes. This is the third round of Medicare drug price talks, and it is the first round to include drugs given in a doctor's office rather than at a pharmacy.
Understand the basics first
Source: CMS
Read at the source →