NCPA calls for immediate freeze of Medicare Drug Price Negotiation to protect pharmacies and patients

Based on latest report, the program is structured in a way that will force many independent pharmacies out of the Medicare Part D program.

National Community Pharmacists Association (NCPA) released “Unpacking the Financial Impacts of Medicare Drug Price Negotiation,” conducted by 3 Axis Advisors. The report concludes that the Inflation Reduction Act’s Medicare Drug Price Negotiation Program (MDPNP) exposes small and independent pharmacies to significant financial risk, with the potential for disrupting seniors’ access to essential medications.

Based on the analysis, MDPNP fundamentally shifts pharmacy operations and reimbursement practices for many of Medicare’s most widely used prescription brand medicines. In addition, the analysis noted that the removal of Maximum Fair Price (MFP) drugs from 340B between covered entities and contract pharmacies could mean reduced dispensing fee payments or carveouts, creating even more financial impacts that will lead to more pharmacy closures, reduced medication availability and staffing cuts, and causing downstream disruptions for seniors at the pharmacy counter.

“Like many government programs, the intent is good, but the unintended consequences undermine the goal,” said NCPA CEO B. Douglas Hoey, in a statement. “That’s exactly the case here. Everyone wants to reduce drug costs for seniors and taxpayers. But, as our research shows, the program is structured in a way that will force many independent pharmacies out of the Medicare Part D program. Drug costs may come down, but there will be a shortage of pharmacies to dispense medicine. Seniors will be stranded without a pharmacy, and they won’t get the benefit of lower drug prices.”

Medicare has already completed negotiation for the first 10 medications whose MFPs under the IRA will take effect Jan. 1, 2026. Since implementation is already underway, the NCPA is strongly urging the new administration and Congress to immediately freeze that implementation.

Earlier this month, the Centers for Medicare & Medicaid Services announced the 15 drugs that will be subject to negotiation in 2027. However, expanding the list of MFP drugs is already raising concerns for pharmacies, as a recent NCPA member survey revealed that 93.2% of independent pharmacies are either considering not stocking or have already chosen not to stock one or more of the first 10 drugs included in the MDPNP.