On March 13, 2026, the Centers for Medicare & Medicaid Services (CMS) announced that all manufacturers with drugs selected for forced negotiation under the Inflation Reduction Act (IRA) for Initial Price Applicability Year (IPAY) 2028 have agreed to participate in the negotiations.[1] This represents full compliance from the pharmaceutical industry with the IRA's mandatory drug price negotiation program.
Who's Involved & Context
The IRA, enacted as part of broader healthcare reform efforts, established a mechanism requiring CMS to select high-cost Medicare drugs for price negotiations with manufacturers.[1] These negotiations will occur in 2026, with negotiated prices—referred to as Maximum Fair Prices (MFPs)—becoming effective in 2028.[5] The first set of MFPs from earlier negotiations took effect January 1, 2026.[1] The Trump administration is simultaneously pushing Congress to codify most favored nation (MFN) drug pricing policies and advance alternative payment models like Globe and Guard.[1][3]
Why It's Newsworthy
Universal manufacturer participation eliminates potential legal or compliance barriers to implementing the IRA's negotiation framework. This follows significant industry scrutiny and earlier resistance from some drugmakers. Notably, despite these negotiations and government pricing pressure, drugmakers still planned price increases on at least 350 branded medications in 2026, with a median increase of approximately 4%.[9] The announcement also occurs amid broader healthcare policy shifts, including CMS regulations on how combination drugs will be treated in future IRA selections.[1]