Trump Administration Proposes Medicare Drug Rule

The Donald Trump administration, through the United States — Centers for Medicare & Medicaid Services, has proposed a new rule to prevent hospitals from charging markups on discounted drugs for United States — Medicare patients under the 340B program. This initiative aims to save United States — Medicare patients an estimated $1.1 billion next year and potentially $20 billion over 10 years by reducing United States — Medicare reimbursements to hospitals by approximately 40%. The rule, which would cap reimbursement at the average sales price minus 33.4%, follows an executive order signed by Donald Trump in April 2025 to survey hospital drug purchasing costs. The American Hospital Association has expressed strong opposition, arguing that the rule will financially strain hospitals and compromise their ability to provide essential services. This proposal comes after a similar attempt by the Donald Trump administration in 2018 was overturned by the United States — Supreme Court of the United States in 2022.