What's Happening?
The Trump administration plans to survey safety-net hospitals on their prescription drug costs as part of efforts to adjust Medicare drug reimbursement rates. This initiative follows previous attempts
to reduce hospital reimbursements during President Trump's first term. The survey, announced in the Centers for Medicare & Medicaid Services hospital outpatient prospective pay proposed rule, is expected to begin in late 2025 or early 2026. The results will inform drug payment rates in the 340B Drug Pricing Program, which mandates significant discounts for outpatient drugs.
Why It's Important?
The survey and subsequent adjustments to drug payment rates could have significant financial implications for safety-net hospitals, which rely on discounted drugs to serve low-income and uninsured patients. Changes to reimbursement rates may affect the hospitals' ability to provide affordable care, potentially impacting access to essential medications for vulnerable populations. This initiative underscores the ongoing debate over drug pricing and healthcare affordability, highlighting the need for policies that balance cost control with patient access.
