Just one month after the first tranche of Maximum Fair Price (MFP) drugs went into effect on January 1 of this year, CMS announced the fifteen MFP products that have been selected to go into effect on January 1, 2028. On March 13, CMS announced that all of the selected product manufacturers confirmed that they will participate in price negotiations.
The Initial Price Applicability Year (IPAY) 2028 MFP products will also include medical products covered under Medicare Part B. In a departure from the drug selection process for IPAY 2026 and IPAY 2027, the IPAY 2028 drugs were selected with a focus on total combined expenditures under not only Part D but also Part B. Nevertheless, 80% of spending for these fifteen newly selected drugs falls under the Part D benefit, but five selected products do have the majority of their gross spending under Part B, including Orencia, Entyvio, Botox, Xolair, and Cimzia.
The fifteen IPAY 2028 drugs selected are as follows:
Table Source: PHSL research including “Medicare Drug Price Negotiation Program: Selected Drugs for Initial Price Applicability Year 2028,” CMS. https://www.cms.gov/files/document/factsheet-medicare-negotiation-selected-drug-list-ipay-2028.pdf
In addition, Tradjenta, Boehringer Ingelheim’s diabetes drug that participated in the IPAY 2027 negotiations was selected for renegotiation in IPAY 2028. Tradjenta was originally selected in 2025, so the previously negotiated price does not go into effect until 2027. CMS will now renegotiate a new price for 2028 and beyond, so that the originally negotiated price will only be in effect for one year. Tradjenta was selected because it now exceeds 16 years of exclusivity, causing it to be reclassified as a “long monopoly.” However, if a generic launches against Tradjenta before 2028, which is expected, Tradjenta could be removed from the selected drug list for 2028, making renegotiations a moot point. Generic competitors for Tradjenta and Xeljanz are both expected to launch in 2026.
PHSL Spring 2026 Newsletter:
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