Trump administration plans new rule to cut drug prices

Main Idea: The Trump administration is proposing a new Medicare rule that would lower hospital payments for discounted drugs and could cut patient costs.

Key Points:

• The rule would target hospitals in the 340B program, which buys outpatient drugs at steep discounts for low-income patients.
• The Centers for Medicare & Medicaid Services says the change could save older Medicare patients about $800 a year on average.
• The administration estimates total savings of about $1.1 billion next year, with about $20 billion over 10 years.
• Hospital systems could lose revenue if the rule takes effect, and the policy is likely to renew a long fight between hospitals and drug makers.