US targets $27B in Medicare drugs for price talks by February deadline

The US government has revealed the next set of prescription drugs facing Medicare price negotiations. Announced on 27 January 2026, the list includes treatments for chronic conditions like diabetes, cancer, and HIV. The move follows rules set by President Joe Biden's Inflation Reduction Act of 2022.

The selected drugs represent roughly $27 billion in annual Medicare spending. Manufacturers now have until 28 February to decide whether to join the talks or risk pulling their products from the programme.

The Trump administration unveiled the third round of drugs subject to Medicare price negotiations. Among them are well-known medications such as Botox, used for medical—not cosmetic—purposes, and Trulicity, a Type 2 diabetes treatment. The government also added Tradjenta, another Type 2 diabetes drug, to the negotiation list.

The drugs cover a wide range of conditions, including COPD, autoimmune diseases, allergies, and mental health disorders. Major pharmaceutical firms affected include Eli Lilly, AbbVie, Pfizer, Novartis, Gilead, Johnson & Johnson, and Bristol Myers Squibb.

Companies can opt out of the negotiations, but doing so may force them to withdraw their drugs from Medicare coverage. Any agreed-upon prices will take effect in 2028.

The decision deadline for drugmakers is set for 28 February. If they participate, the new prices will apply within two years. The negotiations aim to reduce costs for some of Medicare's most expensive medications.