Trump administration proposes a rule it says could save Medicare patients $1.1 billion on drugs
Summary
The Trump administration has proposed a new rule aimed at lowering the cost of prescription drugs for Medicare patients. The rule would limit how much hospitals can charge for discounted outpatient drugs under the 340B program, potentially saving patients $1.1 billion next year.Key Facts
- The 340B program lets hospitals serving low-income patients buy outpatient drugs at lower prices.
- Currently, some hospitals charge insurers more than their drug costs, causing higher patient bills.
- The proposed rule would reduce Medicare reimbursements to these hospitals by about 40% for 340B drugs.
- An average Medicare Part B patient could save about $800 annually in co-payments under this rule.
- The rule aims to save a total of $1.1 billion next year and potentially $20 billion over 10 years.
- Hospitals buy certain drugs for about $700 but often get reimbursed around $4,000 plus patient fees.
- The rule would take effect at the start of next year if approved.
- A similar effort was blocked by the Supreme Court in 2022, but a 2025 executive order led to this new proposal.
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