Third Medicare Drug Negotiation Cycle Closes, Including Part B Doctor-Office Drugs for the First Time

The federal government's third cycle of Medicare drug price negotiations formally closed November 1, 2026. The Centers for Medicare and Medicaid Services now has until November 30 to publish any maximum fair prices that were agreed upon with drug manufacturers. If finalized, those prices take effect January 1, 2028.

The third cycle is the first to include drugs covered under Medicare Part B, the portion of Medicare that pays for treatments given in doctors' offices, clinics, and outpatient settings. Prior cycles covered only Part D pharmacy drugs. Among the 15 selected drugs, Botox and Botox Cosmetic, made by AbbVie Inc., are the prominent Part B entries. Medicare spent approximately 1.14 billion dollars on Botox therapies in a recent year, and about 390,000 beneficiaries received those treatments for approved conditions including chronic migraine, overactive bladder, and muscle spasticity.

The other drugs in this cycle span treatments for HIV, inflammatory bowel disease, rheumatoid arthritis, diabetes, certain cancers, depression, lung disease, and allergy and asthma. Tradjenta, a type 2 diabetes drug previously negotiated under an earlier cycle, is also in renegotiation this cycle.

All 15 manufacturers signed agreements to participate. CMS is required by statute to publish any results no later than November 30, 2026. Neither CMS nor any participating manufacturer has publicly disclosed the outcome of individual offer exchanges before the close.