Medicare Drug Pricing Negotiations and Transparency Expansion
Key Questions
What savings did the White House claim from drug pricing negotiations?
Dr. Oz announced major negotiations, expansion of TrumpRx.gov, and a most-favored-nation pricing strategy projected to deliver $600B in savings.
How will Medicare drug price negotiations expand in future years?
CMS proposed permanent rules to expand negotiations to 20 drugs per year starting in 2029. The proposal also closes a loophole on product grouping for biologics.
What changes did CMS propose for 340B hospital payments?
CMS proposed capping 340B reimbursements, potentially saving Medicare patients $1.1B on drugs. The rule also sets 340B payments at ASP-33.4% and faces legal challenges.
What site-neutral reforms are included in the CY 2027 OPPS rule?
CMS proposed site-neutral cuts to imaging services expected to save $260M in 2027, with rural hospital exemptions. The overall OPPS payment rate would increase by 2.4%.
What is the status of the proposed 340B payment reductions?
The proposal draws pushback from the American Hospital Association. It builds on a previous Supreme Court ruling and aims to reduce hospital margins on 340B drugs.
A White House briefing by Dr. Oz (CMS Administrator) announced major drug pricing negotiations, expansion of TrumpRx.gov, and a most-favored-nation pricing strategy, claiming $600B in savings. CMS proposed closing a loophole on product grouping for biologics and permanent rules expanding negotiations to 20 drugs per year starting in 2029. A new video (June 2026) reinforces the permanent framework and includes Supreme Court legal context. The Trump administration proposed a rule to cap 340B hospital reimbursements, potentially saving Medicare patients $1.1B on drugs, but faces legal hurdles after a previous Supreme Court ruling. CMS also proposed OPPS 2027 with a 2.4% net increase, site-neutral cuts to imaging ($260M), and a 340B payment reduction to ASP-33.4%, drawing AHA pushback. Additionally, CMS proposed site-neutral expansion to imaging services, targeting $260M in 2027 savings, with rural hospital exemptions.