The Trump administration recently announced a delay in a proposal aimed at closing a loophole that allows drugmakers to avoid Medicare price negotiation by making minor adjustments to their products. This loophole has been a point of contention as President Trump has been vocal about the need for drugmakers to charge Americans prices that are in line with those of other wealthy countries.
It is important to note that Medicare already has a program in place for negotiating drug prices, which was established by former President Biden’s Inflation Reduction Act. This program was passed by Democrats without any Republican support. Some industry analysts and insiders have suggested that the Trump administration’s Medicare officials are taking a more aggressive approach to price negotiations compared to the Biden administration.
However, this recent decision to delay the crackdown on the loophole is seen as another instance of the administration showing leniency towards drugmakers. For example, Trump’s tax bill exempted drugs used to treat multiple rare diseases, known as orphan drugs, from negotiation. Additionally, Medicare negotiation for drugs that were initially approved as orphan drugs and later approved for broader use was also delayed.
Overall, the delay in addressing this loophole raises questions about the administration’s commitment to ensuring fair drug pricing for Americans. It will be interesting to see how this decision plays out in the ongoing debate over drug pricing and Medicare negotiation.
