Trump administration to release new rules reducing drug costs
The Trump administration is expected Friday to release two final rules aimed at lowering prescription drug prices, both of which drew significant industry opposition.
The Trump administration is expected Friday to release two final rules aimed at lowering prescription drug prices, both of which drew significant industry opposition. PBMs had hoped to beat back a rule curtailing the rebates that drug companies pay Medicare middlemen—billions of dollars each year—and redirecting those savings to patients. The rule is being finalized, however, after adding a stipulation that it not increase Medicare premiums, as actuarial reports had suggested it might. Drug manufacturers, meanwhile, had lobbied to derail the "most-favored nation" policy, which aims to align the prices of certain drugs in the United States with their costs in other developed nations. A spokeswoman with the Pharmaceutical Research and Manufacturers of America warned that the rule would "allow foreign governments to arbitrarily decide what medicines are worth in the United States and what diseases are worth investing in." While some lawmakers believe the rule will lower drug costs, others have expressed concern that it could stifle research and development.