Future of Medicare drug price negotiations under new administration: 5 things to know

As President-elect Donald Trump prepares to take office, the future of Medicare's drug price negotiation program, part of the 2022 Inflation Reduction Act, is uncertain, Roll Call reported Nov. 15. 

The program, which allows the federal government to negotiate prices for high-cost drugs, is a key policy achievement of the Biden administration, but its future could be affected by changes under the new administration and Congress.

Here are four more things to know: 

1. Upon taking office, the Trump administration will inherit the responsibility for implementing the Medicare drug price negotiation program, established under the Inflation Reduction Act, which allows the government to negotiate prices on certain high-cost drugs starting in 2026. While Mr. Trump has previously expressed support for Medicare price negotiations, his position on the current program remains unclear.

2. A critical deadline for the incoming administration is February 1, 2025, by which Medicare must select up to 15 additional high-cost drugs for negotiation. Although the Biden administration may finalize this list before Mr. Trump assumes office, the new administration may review and potentially alter the selections or aspects of the program.
   
   
3. The Medicare drug price negotiation program is currently facing multiple legal challenges. The DOJ under the Trump administration will need to decide whether to continue defending the program in court. If the administration opts not to defend the program, it could face further delays or complications. However, the law's provisions for the program are detailed and specific, leaving the new administration with limited flexibility in making changes without significant legal ramifications. 
   
   
4. In addition to drug price negotiations, the Biden administration implemented a program this year aimed at stabilizing Medicare Part D premiums. This $5 billion stabilization program includes subsidies to plans and caps on premium increases. Republicans have criticized the program as a "taxpayer-funded bailout," according to the Roll Call report and the new administration could decide to end the program before the next open enrollment period, which typically starts in October.