The Trump administration is proposing a rule to prevent hospitals from marking up discounted drugs for Medicare patients, a move that could save consumers $1.1 billion in 2025, according to estimates obtained by The Associated Press.
The rule specifically targets the 340B program, which allows hospitals serving low-income patients to purchase outpatient prescription drugs at steep discounts. Currently, many hospitals bill insurers at rates far exceeding their costs, pocketing the difference and driving up patient expenses.
The Centers for Medicare & Medicaid Services would adjust the reimbursement formula for participating hospitals under the proposed change, aiming to curb these overcharges. The Republican administration frames this as a key affordability measure during an election year, when rising healthcare costs burden both families and the federal budget.
While the administration has touted other cost-saving healthcare initiatives, the actual impact remains uncertain. Critics argue that hospitals may find loopholes or shift costs elsewhere, reducing the promised savings for patients.
Counter-argument: Critics note the $1.1 billion figure is an estimate, and hospitals may resist the rule, arguing it could reduce their ability to fund uncompensated care for the poor.