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Trump administration to release new rules reducing drug costs
Lower drug prices, insurance premiums under Trump: White House economist
Council of Economic Advisers acting chairman Tyler Goodspeed on President Trump’s economy and health care plan.
The Trump administration is planning on Friday to roll out two final rules aimed at lowering drug prices — one curbing rebates paid to middlemen in Medicare and another pegging the prices of certain prescription drugs in the U.S. to their prices in other developed countries, according to a person familiar with the planning.
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The plans, slated to be announced in the White House Rose Garden, have been a signature pledge of President Trump's since his 2016 election campaign. Both rules are expected to be final, meaning they have completed the required public comment period and can take effect immediately.
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Drugmakers, pharmacy-benefit managers, and others in the pharmaceutical industry had lobbied over the two rules. Drugmakers had hoped to stop the first-ever price controls linked to prices charged in other nations. Pharmacy-benefit managers, which serve as third parties that manage benefits for Medicare as well as Medicaid managed care, fought to curb rebates that are worked out between themselves and drugmakers.
The government has said it seeks to redirect those discounts toward patients.
Ending the rebates would save the drug companies billions of dollars they pay to the middlemen in Medicare, the federal health-insurance program for seniors and the disabled. An earlier version of the rule was withdrawn in 2019 because some White House advisers raised concerns about actuarial reports showing it could increase Medicare premiums.