For the very first time in history, Medicare will be able to negotiate lower prescription drug prices since the passage of the Inflation Reduction Act by Congress last August and its signing by President Joe Biden.

The U.S. Department of Health and Human Services (HHS), through the Centers for Medicare & Medicaid Services (CMS), issued initial guidance on March 15 that details the requirements and parameters associated with crucial elements of the new Medicare Drug Price Negotiation Program and includes requests for public comment. The new negotiated prices will apply for the first time in 2026.

According to Xavier Becerra, Secretary of HHS, “Through the Medicare Drug Price Negotiation Program, we will make sure seniors get a fair price on Medicare’s costliest prescription drugs, promote competition in the market, and ensure Medicare is strong for beneficiaries today and into the future.”