STAT+: Trump administration revisits policy to close Medicare drug price negotiation loophole
Article excerpt
The Trump administration is reconsidering a policy aimed at closing a loophole in Medicare's drug price negotiation system. The loophole allows pharmaceutical companies to circumvent negotiated price caps through various legal strategies. This revisitation of the issue suggests the administration may pursue regulatory changes to strengthen Medicare's negotiating power, though details on the specific policy approach remain unclear. The move reflects ongoing tension between drug makers and government efforts to control prescription costs for seniors.
WASHINGTON, The Trump administration on Friday proposed to change a policy that is designed to prevent drugmakers from avoiding Medicare price negotiation by adding active ingredients to drugs.
The policy is part of an annual proposed rule that establishes the process that the Centers for Medicare and Medicaid Services uses to choose the next 20 drugs and biologics for price negotiation. Those drugs will be announced by Feb. 1, 2027, and their negotiated prices will take effect in 2029. The administration also considered a similar policy last year but put off a decision to study it further.
Medicare must wait seven to 11 years after a product is approved by the Food and Drug Administration before it can negotiate its price, depending on the type of medicine. Biologics that are typically administered in doctor offices get more time than drugs taken orally.
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