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Future of Medicare drug price negotiations under the new administration: 5 things to know
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Future of Medicare drug price negotiations under the 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 Inflation Reduction Act of 2022, is uncertain. Call reported on November 15.

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

Here are four other things to know:

  1. Upon taking 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. Although Mr. Trump has previously supported the negotiations over Medicare prices, its position on the current program remains the same. unclear.
  2. A key deadline for the new administration is February 1, 2025, when Medicare must select up to 15 high-cost drugs to negotiate prices. Although the Biden administration could select these drugs before Mr. Trump takes office, the new administration could review and possibly modify the list.
  3. The Medicare drug price negotiation program currently faces multiple legal challenges. The DOJ under the Trump administration will have to decide whether to continue defending the program in court. If the administration chooses not to defend the program, it could face further delays or complications. However, the law’s provisions regarding the program are detailed and specific, leaving the new administration with limited flexibility to make changes without significant legal consequences.
  4. In addition to drug price negotiations, the Biden administration this year implemented a program to stabilize Medicare Part D premiums. This $5 billion stabilization program includes subsidies to plans and capping increases bonuses. Republicans criticized the program as a “taxpayer-funded bailout,” according to the Call report and the new administration could decide to end the program before the next open enrollment period, which typically begins in October.