Chicago – July 02, 2026
The Trump administration is proposing a new Medicare drug-payment rule that it says could save patients about $1.1 billion next year by limiting hospital markups on discounted medicines. The plan targets hospitals in the 340B drug discount program, which buys outpatient drugs at reduced prices for low-income patients.
Under the proposal, the Centers for Medicare & Medicaid Services would adjust reimbursement formulas so hospitals cannot profit as much when they administer these drugs to Medicare beneficiaries. Administration estimates suggest the average older adult with Medicare Part B could save about $800 a year in co-payments.
The White House says the change could total nearly $20 billion in savings over 10 years, while the rule itself could take effect at the start of next year if approved. Supporters say it is aimed at lowering drug costs for seniors; hospitals are likely to argue it will cut revenue needed to fund care.
