The administration has proposed new regulations that would cap annual prescription drug price increases at the rate of inflation for all medications covered by Medicare and Medicaid. The rules expand on existing negotiation authority and would apply to an estimated 2,000 additional drugs beyond those already subject to price controls.
Health policy analysts estimate the proposal could save the federal government $80 billion over the next decade while reducing out-of-pocket costs for approximately 40 million seniors and low-income patients. The pharmaceutical industry has strongly opposed the measure, arguing it will stifle research and development investment.
The proposed rules are subject to a 90-day public comment period before finalization, and legal challenges from drug manufacturers are widely expected to follow.
