Medicare Drug Price Negotiations Latest: Kiplinger Economic Forecasts
Early signs have emerged of how these key drug price negotiations will be handled.


Healthcare, health insurance and Medicare are hot topics and controversial topics at times too. Developments in this sector naturally impact our well-being and they also have a major effect on the economy and political circles.
To help you understand what is going on and what we expect to happen in the future, our highly-experienced Kiplinger Letter team will keep you abreast of the latest developments and forecasts (Get a free issue of The Kiplinger Letter or subscribe). You'll get all the latest news first by subscribing, but we will publish many (but not all) of the forecasts a few days afterward online. Here’s the latest...
Some early signs of how Medicare will handle drug price negotiations: Officials plan to announce the initial group of drugs later this year, the first 10 of 140 drugs for which the Centers for Medicare & Medicaid Services (CMS) will be able to negotiate the price by 2033.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
This will give manufacturers time to prepare for talks, which will start for Medicare Part D drugs in 2026 and 2027.
Among the factors that CMS will consider in valuing a drug:
- Clinical benefits
- The net price of alternatives
- Research costs
- Revenue
- Patent protections and
- Federal funding
The industry is warning about lower investment in certain kinds of drugs, namely small-molecule drugs, which are exempt from negotiations for seven years after approval by the Food and Drug Administration (FDA) vs. 11 years for large-molecule drugs or biologics. Small-molecule drugs are manufactured via chemical synthesis and include things like aspirin and other “medicine cabinet” pharmaceuticals.
This forecast first appeared in The Kiplinger Letter. Since 1923, the Letter has helped millions of business executives and investors profit by providing reliable forecasts on business and the economy, as well as what to expect from Washington. Subscribe or get a free issue of The Kiplinger Letter.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

-
Why Splurging in Retirement is Totally Worth It
Splurging on yourself is okay when it fits your budget, as it can enhance your happiness and reward your hard work without compromising financial security.
-
5 Ways Portfolios Have Been Impacted In Trump's First Six Months in Office
President Trump's first six months in office have kept investors on their toes thanks to whipsaw tariff policies and a massive tax cut and spending bill.
-
Breaking China's Stranglehold on Rare Earth Elements
The Letter China is using its near-monopoly on critical minerals to win trade concessions. Can the U.S. find alternate supplies?
-
What New Tariffs Mean for Car Shoppers
The Kiplinger Letter Car deals are growing scarcer. Meanwhile, tax credits for EVs are on the way out, but tax breaks for car loans are coming.
-
AI’s Rapid Rise Sparks New Cyber Threats
The Kiplinger Letter Cybersecurity professionals are racing to ward off AI threats while also using AI tools to shore up defenses.
-
Blue Collar Workers Add AI to Their Toolboxes
The Kiplinger Letter AI can’t fix a leak or install lighting, but more and more tradespeople are adopting artificial intelligence for back-office work and other tasks.
-
America's Surprising Strengths in Manufacturing and Exports
The Kiplinger Letter Despite common perceptions that the U.S. doesn't build things anymore, American factories are still hard at work. A special report from The Kiplinger Letter.
-
Tax Rule Change Could See Millions Lose Health Insurance
The Kiplinger Tax Letter If current rules for the health premium tax credit (PTC), a popular Obamacare subsidy, aren't extended, 3.7 million people could lose their health insurance.
-
Travel Trends You Can Expect This Summer
The Kiplinger Letter Domestic trips will trump foreign travel amid economic uncertainties, though some costs are down.
-
AI Goes To School
The Kiplinger Letter Artificial intelligence is rapidly heading to K-12 classrooms nationwide. Expect tech companies to cash in on the fast-emerging trend.