The Trump administration proposed a new rule Thursday aimed at preventing hospitals from marking up discounted drugs for Medicare patients, saying the change could save consumers $1.1 billion next year, according to estimates obtained by the Associated Press.
Rule Targets Hospital Drug Markups The rule would apply to hospitals that serve low-income patients under the 340B program, which allows eligible hospitals to purchase outpatient prescription drugs at discounted prices, notes AP in its report.
Hospitals can often bill Medicare at rates above what they paid for those drugs, keeping the difference.
Patients can also face higher co-payments because their share of the bill is based on Medicare’s reimbursement rate rather than the hospital’s purchase price.
Under the proposal, the Centers for Medicare & Medicaid Services would change the formula by which hospitals in the program can receive payments for certain drugs.
