Trump Administration Announces Plan to Reduce Drug Prices
In an effort to reduce high drug costs, the prices paid by Medicare for certain prescription drugs would be based on those in other advanced industrial nations.
HealthDay News — In an effort to cut high drug costs, the prices paid by Medicare for certain prescription drugs would be based on those in other advanced industrial nations, according to a proposal announced Oct. 25 by the Trump administration.
The move would cut costs for Medicare and save beneficiaries millions of dollars, according to an article in The New York Times.
Under a demonstration project in half the country, Medicare would create and use an "international pricing index" to decide how much to pay for drugs covered by Part B of Medicare.
A recently released study by the U.S. Department of Health and Human Services revealed that Medicare paid 80 percent more than other advanced industrial countries for some of the most expensive prescription medicines, The Times reported.