HHS issues final guidance for second cycle of drug pricing negotiations

The Department of Health and Human Services released final guidance on October 2 detailing the process for the second round of negotiations under the Medicare drug price negotiation program. It also explains how the Centers for Medicare & Medicaid Services will help ensure that Medicare beneficiaries have access to drugs at negotiated prices beginning in the first and second cycles when those prices take effect in 2026 and 2027, respectively. CMS in August announced lower prices for 10 Part D drugs selected in the first round. The AHA commented on the guidance for the program in July, expressing concern about CMS's proposal to retroactively provide access to negotiated prices and its impact on the 340B program. The AHA will soon release more information about the specific implications of the final guidance for hospitals.