President Donald Trump outlined a plan Thursday he said would allow Medicare to lower drug prices for its Part B coverage and end this “rigged system” that allows other countries to pay less than the U.S. for the same drugs.
Medicare reimburses the list price of the drug plus 6 percent, so capping price increases could help lower the program’s costs. Total Medicare drug spending reached $162 billion in 2015, according to data from the Centers for Medicare and Medicaid Services.
wants to end global freeloading, we compared prices for the most costly physician-administered drugs that are covered and paid for by Medicare Part B,” Azar tweeted. The “prices for Part B drugs in America exceed the prices paid in countries with similar economic conditions.”
— CNBC’s Angelica LaVito and
contributed to this report.
This is a developing story. Please check back for updates.