STAT+: Trump administration revisits policy to close Medicare drug price negotiation loophole

STAT PlusPolitics Trump administration revisits policy to close Medicare drug price negotiation loophole The administration says its proposal maintains program integrity. Drugmakers say it would discourage them from improving drugs Manage alerts for this article Email this article Share this article By John WilkersonJune 12, 2026 Washington Correspondent John Wilkerson[email protected]John writes about the politics of health care, and he is the author of the twice-weekly D.C. Diagnosis newsletter. You can reach John on Signal at John_Wilkerson.07. WASHINGTON — The Trump administration on Friday proposed to change a policy that is designed to prevent drugmakers from avoiding Medicare price negotiation by adding active ingredients to drugs. The policy is part of an annual proposed rule that establishes the process that the Centers for Medicare and Medicaid Services uses to choose the next 20 drugs and biologics for price negotiation. Those drugs will be announced by Feb. 1, 2027, and their negotiated prices will take effect in 2029. The administration also considered a similar policy last year but put off a decision to study it further.Advertisement Medicare must wait seven to 11 years after a product is approved by the Food and Drug Administration before it can negotiate its price, depending on the type of medicine. Biologics that are typically administered in doctor offices get more time than drugs taken orally. STAT+ Exclusive Story Already have an account? Log in This article is exclusive to STAT+ subscribers Unlock this article — plus daily intelligence on Capitol Hill and the life sciences industry — by subscribing to STAT+. Already have an account? Log in Monthly $39 Totals $468 per year $39/month Get Started Totals $468 per year Starter $30 for 3 months, then $399/year $30 for 3 months Get Started Then $399/year Annual $399 Save 15% $399/year Get Started Save 15% 11+ Users Custom Savings start at 25%! Request A Quote Request A Quote Savings start at 25%! 2-10 Users $300 Annually per user $300/year Get Started $300 Annually per user View All Plans To read the rest of this story subscribe to STAT+. Subscribe Log In biotechnology, CMS, Drug prices, Medicare, Medicare negotiation, Pharmaceuticals, Policy, STAT+ Submit a correction requestReprints John Wilkerson Washington Correspondent John writes about the politics of health care, and he is the author of the twice-weekly D.C. Diagnosis newsletter. You can reach John on Signal at John_Wilkerson.07. Newsletter The latest updates in federal health agencies, research institutes, and U.S. policy Recommended Business June 12, 2026 STAT Plus: At hospital finance conference, a call to end the friction that’s keeping costs high STATus Report June 12, 2026 How a diabetes conference sparked a controversy Advertisement Politics June 11, 2026 STAT Plus: Updated: Tracking RFK Jr.’s promises to remake health in America Politics June 11, 2026 RFK Jr. claims his calendar is publicly available. We’ve been trying to get it for a year D.C. Diagnosis June 11, 2026 STAT Plus: A suspicious denial pattern in Medicare Advantage Subscriber Picks