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United StatesMedicine8 days ago

STAT+: Trump administration revisits policy to close Medicare drug price negotiation loophole

The Trump administration has proposed changes to a policy aimed at preventing pharmaceutical companies from circumventing Medicare price negotiations by adding new active ingredients to existing drugs. This policy is part of an annual rulemaking process by the Centers for Medicare and Medicaid Services (CMS), which determines the next 20 drugs and biologics eligible for price negotiation. The selected drugs will be announced by February 1, 2027, with negotiated prices taking effect in 2029. A similar proposal was considered last year but delayed for further study. Medicare generally waits 7 to

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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Source document: Centers for Medicare and Medicaid Services (CMS)

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STAT NewsIndependentCenter8 days ago
STAT+: Trump administration revisits policy to close Medicare drug price negotiation loophole

The Trump administration has proposed changes to a policy aimed at preventing pharmaceutical companies from circumventing Medicare price negotiations by adding new active ingredients to existing drugs. This policy is part of an annual rulemaking process by the Centers for Medicare and Medicaid Services (CMS), which determines the next 20 drugs and biologics eligible for price negotiation. The selected drugs will be announced by February 1, 2027, with negotiated prices taking effect in 2029. A similar proposal was considered last year but delayed for further study. Medicare generally waits 7 to

Bias read (Center): The article presents factual information without overtly biased language or emphasis. It describes the proposed policy change neutrally, providing context about the timeline and previous considerations without taking a stance on whether the policy is positive or negative.

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  • government Centers for Medicare and Medicaid Services (CMS)

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  • governmentCenters for Medicare and Medicaid Services (CMS)