How will CMS administer the IRA Medicare Drug Price Negotiation under Trump?

Some hints–and only hints–were provided in a CMS press release on Wednesday.

Lowering the cost of prescription drugs for Americans is a top priority of President Trump and his Administration. In accordance with the statutory requirements of the Inflation Reduction Act, the Centers for Medicare and Medicaid Services (CMS) released the list of 15 drugs selected for the second cycle of the Medicare Drug Price Negotiation Program on January 17, 2025. As the second cycle begins under the Trump Administration, CMS is committed to incorporating lessons learned to date from the program and to considering opportunities to bring greater transparency in the Negotiation Program. CMS intends to provide opportunities for stakeholders to provide specific ideas to improve the Negotiation Program, consistent with the goals of achieving greater value for beneficiaries and taxpayers and continuing to foster innovation.

Key words to pay attention to are ‘transparency’, ‘value’ and ‘innovation’. How exactly those words will translate into administrative policy and rules, however, is not entirely clear.

Fierce Healthcare reports that:

Wednesday’s CMS release reaffirmed the program as a statutory requirement and does not suggest any plans to block its continued operation. However, it does suggest some changes could be coming to implementation of the negotiations.

Democrats, however, believe that the statement indicates that the IRA Medicare Drug Price Negotiation is likely to change.

“Contrary to what you suggested in [Wednesday]’s hearing, the Trump Administration’s statement is far from an embrace of drug price negotiation and appears to be opening the door to changes…”

In short, the CMS Medicare Drug Price Negotiation program will continue, but in what form is still to be determined.