Trump administration proposes a rule it says could save Medicare patients $1.1 billion on drugs
The rule would save Medicare Part B patients about $800 a year in copayments, while reducing hospital reimbursements by 33.4%, officials said.
- On Thursday, the Trump administration proposed a new rule to cap hospital markups on discounted drugs for Medicare patients, potentially saving consumers $1.1 billion next year.
- President Donald Trump signed an executive order in April 2025 to survey hospital drug spending; survey results led to this proposal capping Medicare reimbursement at average sales prices minus 33.4%.
- For the prostate cancer drug Lupron Depot, hospitals can acquire a dose for roughly $700 but receive about $4,000 in Medicare reimbursement plus $1,000 in patient co-payments; the proposed rule would cut that amount roughly 40%.
- Hospital systems warn that reduced revenues could impact community services and staffing levels, as the program remains a lobbying battleground between hospitals and pharmaceutical companies.
- During President Donald Trump's first term, the administration attempted similar payment reductions, but the Supreme Court ruled in 2022 that the government could not provide a separate reimbursement plan for these hospitals.
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Henry Herald
The Latest: Trump administration plans new rule that could save Medicare patients $1.1 billion
The Trump administration is proposing a new rule to keep hospitals from charging markups on discounted drugs for Medicare patients and says that could save consumers $1.1 billion next year, according to estimates obtained by the AP. The rule expected…
A proposed Medicare reimbursement change could reshape hospital drug pricing
The Trump administration is proposing a new rule to keep hospitals from charging markups on discounted drugs for Medicare patients and says it could save consumers $1.1 billion next year, according to estimates obtained by The Associated Press. The rule would apply to hospitals that serve low-income patients under what is known as the 340B program, which lets hospitals buy outpatient prescription drugs at discounted prices. But in many cases, ho…
Associated Press News
Trump administration proposes a rule it says could save Medicare patients $1.1 billion on drugs
The Trump administration is proposing a new rule to keep hospitals from marking up discounted drugs for Medicare patients.
President Donald Trump’s government proposed Thursday a new rule to prevent hospitals from applying surcharges on Medicare patients’ discounted drugs and states that this could save consumers $1.1 billion next year, according to estimates obtained by The Associated Press. The rule would apply to hospitals that serve low-income patients under what is known as the 340B program, which allows hospitals to purchase prescription drugs for outpatients …
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