Trump administration proposes rule to close Medicare drug price-negotiation loophole

The White House announced a proposal to tighten a policy that stops drugmakers from sidestepping Medicare price negotiations by adding new active ingredients to existing products.

The change would be part of the Centers for Medicare and Medicaid Services' annual rule that selects the next 20 drugs and biologics for negotiation. Those selections are slated for announcement by Feb. 1, 2027, with negotiated prices taking effect in 2029.

Industry groups warned the move could dampen incentives to improve medicines, while the administration argued the rule safeguards the integrity of the negotiation program. A similar proposal was considered last year but was postponed for further study.