The Trump administration says a new plan will cut drug prices. It’s not that simple
When the Trump administration unveiled a new Medicare proposal this week to cut payments to hospitals as part of a drug reimbursement program, Health and Human Services Secretary Tom Price called the plan a “significant step toward fulfilling President Trump’s promise to address rising drug prices.”

The Trump administration says a new plan will cut drug prices. It’s not that simple

WASHINGTON — When the Trump administration unveiled a new Medicare proposal this week to cut payments to hospitals as part of a drug reimbursement program, Health and Human Services Secretary Tom Price called the plan a “significant step toward fulfilling President Trump’s promise to address rising drug prices.”

It may not be that simple.

advertisement

The proposal takes aim at a controversial drug discount program, known as the 340B program, which is designed to boost revenues for hospitals that primarily serve low-income patients. The program requires drug makers to offer those hospitals sizable discounts on certain drugs. The hospital can then bill Medicare and other insurers at regular reimbursement rates when patients take the drugs, banking the extra savings to spend elsewhere.