Trump to unveil Medicare drug pricing plan after teasing “earth-shattering” announcement
President Trump has made a big announcement regarding a plan to cut Medicare drug prices, known as the “most favored nation” plan. This plan aims to tie the cost of high-cost Medicare drugs administered by health care providers to the lowest price that drug manufacturers receive in other countries. The Trump administration had previously attempted to implement this plan during the former President’s first term but faced legal challenges that prevented its full implementation.
The Biden administration later abandoned the proposal in 2022, citing concerns raised by stakeholders and court orders blocking the model. However, there have been hints that the policy may make a comeback, with Health and Human Services Secretary Robert F. Kennedy Jr. mentioning the possibility of negotiating drug prices with pharmaceutical companies to make them more affordable for all.
One specific example cited was the high cost of the diabetes drug Ozempic in Europe, which is also used for weight loss under the brand name Wegovy. Kennedy emphasized the need to address the high prices of such drugs, which could potentially double the cost of health insurance for employers if not managed properly.
Despite the challenges, there is a renewed interest in reintroducing the drug pricing plan under the Trump administration. President Trump is reportedly directing aides to pursue this initiative and work towards achieving the goals he set during his first term in office.
It is clear that addressing the issue of high drug prices in Medicare is a priority for both the Trump and Biden administrations. As negotiations continue and new strategies are explored, the hope is to find a solution that benefits both Medicare beneficiaries and the healthcare providers who administer these vital medications. Stay tuned for further updates on this developing story.
