The Latest on the Trump Administration’s Drug Pricing Initiatives

21 February 2018
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Key takeaways

  • President Trump stated during the State of the Union that addressing high drug prices is a top administration priority.  Since that time, there have been a number of developments relating to drug pricing issues.
  • The Balanced Budget Act, which was signed by President Trump on February 9, contains a provision that will shrink the coverage gap in Medicare Plan D prescription drug coverage and will shift much of the cost of prescription drugs sold to patients in the coverage gap to the pharmaceutical industry.
  • The President’s budget, which was released on February 12, includes a number of proposals that are designed to reduce prescription drug costs, particularly for Medicare Part D beneficiaries. However, the effect of these proposals appears limited, and it is unclear whether Congress will enact them.