The Future of Medicare Drug Price Negotiations Under New Administration: 5 Things to Know
2 mins read

The Future of Medicare Drug Price Negotiations Under New Administration: 5 Things to Know

As President-elect Donald Trump prepares to take office, the future of Medicare’s drug price negotiation program, part of the 2022 Inflation Reduction Act, is uncertain, Call reported 15 Nov.

The program, which allows the federal government to negotiate prices for high-cost drugs, is a major policy achievement for the Biden administration, but its future could be affected by changes under the new administration and Congress.

Here are four more things to know:

  1. When Trump takes office, the Trump administration will be responsible for implementing the Medicare price negotiation program, which allows the government to negotiate prices for certain drugs starting in 2026. While Trump has previously supported Medicare price negotiations, his position on the current program remains. unclear.
  2. A key deadline for the incoming administration is Feb. 1, 2025, when Medicare must select up to 15 high-cost drugs to negotiate prices on. Although the Biden administration may select these drugs before Trump takes office, the new administration may review and possibly change the list.
  3. Medicare’s drug price negotiation program is currently facing several legal challenges. The DOJ under the Trump administration will have to decide whether to continue to defend the program in court. If the administration chooses not to defend the program, it could be subject to further delays or complications. However, the law’s provisions for the program are detailed and specific, giving the new administration limited flexibility to make changes without significant legal ramifications.
  4. In addition to drug price negotiations, the Biden administration has implemented a program this year aimed at stabilizing Medicare Part D premiums. This $5 billion stabilization program includes subsidies to plans and caps on premium increases. Republicans have criticized the program as a “taxpayer-funded bailout,” according to Call report and the new administration may decide to end the program before the next open enrollment period, which usually begins in October.