Thought Leadership Whitepaper: How Will Medicare Drug Price Negotiations Really Impact Providers?

February 14, 2025

As manufacturers prepare for Medicare drug price negotiations, a critical question emerges: How will your provider engagement strategy evolve when Maximum Fair Prices (MFP) take effect in 2026?

As manufacturers prepare for Medicare drug price negotiations, a critical question emerges: How will your provider engagement strategy evolve when Maximum Fair Prices (MFP) take effect in 2026? With discounts ranging from 38%-79% off the wholesale acquisition price (WAC), the provider buy-and-bill margin equation is about to change.

Our analysis reveals why manufacturers need to start planning now for this shift in provider economics and we explore how different manufacturer discount approaches could impact buy-and-bill provider margins. Understanding these dynamics is crucial for maintaining strong provider relationships during this transition.

Key insights include:

  • Strategic considerations for structuring provider discounts in an MFP world
  • Why early signaling to providers regarding discount methodologies matters
  • Importance of considering scenarios with varying provider, competitor, and PBM responses for manufacturers with brands competing against a product with MFP pricing

Complete the form below to download our full analysis to understand how these changes could impact your provider relationships and what steps to take now. 

 

 

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