Trump makes late-term bid to lower prescription drug costs
Source: ABC News
WASHINGTON -- Trying to close out major unfinished business, the Trump administration issued regulations Friday that could lower the prices Americans pay for many prescription drugs.
But in a time of political uncertainty, it’s hard to say whether the rules will withstand expected legal challenges from the pharmaceutical industry or whether the incoming Biden administration will accept, amend or try to roll them back entirely.
The two finalized rules, long in the making, would:
— tie what Medicare pays for medications administered in a doctor's office to the lowest price paid among a group of other economically advanced countries. That's called the “most favored nations” approach. It is adamantly opposed by critics aligned with the pharmaceutical industry, who liken it to socialism. The administration estimates it could save $28 billion over seven years for Medicare recipients through lower copays. It would take effect Jan. 1.
— require drugmakers, for brand name pharmacy medications, to give Medicare enrollees rebates that now go to insurers and middlemen called pharmacy benefit managers. Insurers that deliver Medicare's “Part D” prescription benefit say that would raise premiums. The nonpartisan Congressional Budget Office estimates it would increase taxpayer costs by $177 billion over 10 years. The Trump administration disputes that and says its rule could potentially result in 30% savings for patients. It would take effect Jan. 1, 2022.
Read more: https://abcnews.go.com/Business/wireStory/trump-makes-late-term-bid-lower-prescription-drug-74322814?cid=clicksource_4380645_8_heads_posts_card_hed
It sounds like these new rules, especially the second one, are not well thought out since the CBO says it will substantially increase taxpayer costs.
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