The Trump administration has largely dismantled Biden-era policies but is keeping the Medicare Drug Price Negotiation Program, with potential modifications. The program, created under the Inflation Reduction Act (IRA), allows Medicare to negotiate drug prices, with the first set of negotiated prices taking effect in 2026.
Frier Levitt partner Matthew Kupferberg weighs in on the potential changes to the Medicare Drug Price Negotiation Program in a MedCity News article, “Could the Trump Administration Change the Medicare Drug Price Negotiation Program?” Matthew provides insight on what the new administration could legally change, stating, “By means of the rulemaking process and in how it interprets the IRA, CMS could potentially make significant changes to the negotiation program requirements — in other words, the structure of the negotiation program could be materially impacted, for example, by rulemaking that changes the process timeline or number of meetings between the parties, without Congressional approval.” Essentially, CMS could expedite negotiations, limit manufacturers’ response time to offers, or implement other modifications.
Importantly, however, Matthew notes that even if changes to the program are made “actual repeal of the law, which had broad bipartisan support, is politically risky, and may not succeed.”
Ultimately, it is unclear how the Trump administration will move forward with the Medicare Drug Price Negotiation Program. “At this point, the Administration has only indicated that it intends to stay the course with the drug negotiation process, subject to a rather vague commitment to render the process more transparent and inclusive. … The only thing I think is certain is that there will be no repeal attempt in the near future, and drug cost reduction will remain in play,” Matthew shared.