Trump Administration Unveils $1.1 Billion Medicare Drug Savings Plan

WHO:

Fast Company - The Trump administration is proposing a new rule.

Fast Company - The American Hospital Association is involved in the discussion regarding the proposed rule.

Fast Company - Ashley Thompson, senior vice president for public policy analysis and development at the American Hospital Association, commented on the proposals.

WHAT:

Fast Company - The proposed rule aims to save consumers $1.1 billion next year by preventing hospitals from charging markups on discounted drugs for Medicare patients.

Fast Company - The average older adult with Medicare Part B coverage would save $800 a year in co-payments under the proposed rule.

Fast Company - The total savings for everyone with Medicare Part B coverage could amount to $1.1 billion.

Fast Company - The proposed rule could lead to savings of about $20 billion over 10 years.

Fast Company - The proposed rule would cut Medicare reimbursement for participating hospitals by roughly 40%.

WHERE:

Fast Company - The rule would apply to hospitals that serve low-income patients under the 340B program.

WHEN:

Fast Company - If approved, the proposed rule would go into effect at the start of next year.

Fast Company - The Trump administration attempted to enact a similar rule in 2018 during Trump's first term.

WHY:

Fast Company - The Trump administration aims to address the challenges of affordability for U.S. families amid rising healthcare costs.

Fast Company - The proposed rule is intended to cut costs for patients and reduce financial pressures on households and the government.

HOW:

Fast Company - The Centers for Medicare & Medicaid Services would change the reimbursement formula for hospitals participating in the 340B program.

Fast Company - The proposed rule would cap Medicare reimbursement for participating hospitals at the average sales prices, minus 33.4%.

Fast Company - The administration's survey on hospital drug spending led to the proposed rule.

(UPDATED July 2, 2026 23:29 UTC)

The Trump administration is proposing a new rule aimed at saving consumers $1.1 billion next year by preventing hospitals from charging markups on discounted drugs for Medicare patients, with the average older adult potentially saving $800 annually in co-payments. This rule, which would apply to hospitals serving low-income patients under the 340B program, could lead to total savings of about $20 billion over the next decade if approved and goes into effect at the start of next year. Ashley Thompson, senior vice president for public policy analysis and development at the American Hospital Association, has commented on the proposals, which seek to address the rising healthcare costs and financial pressures faced by U.S. families.